Victorians are facing a massive increase in the cost of new and renovated homes, with the state government’s public insurer announcing insurance premiums will increase by as much as 65 per cent.
Victorians are facing a major increase in the cost of new and renovated homes after the public insurer announced a massive increase in building insurance premiums in"yet another blow" to the state's troubled housing industry.
The change means the insurance premiums on a new homes costing $500,000 will increase from $3,872 to $6,388. Housing Industry Association’s Victorian Executive Direct, Keith Ryan, said the insurance hike was “yet another blow” for home builders, which would “further undermine housing affordability”.“It means new home buyers face more fees and charges, with the typical home in Melbourne already paying more than 40 per cent of the cost of a new house and land package in taxes, fees and charges – which is locking thousands of Victorians out of home ownership.
Shadow finance minister Jess Wilson blamed the increased insurance premiums on the Labor government's financial mismanagement. Picture: Sky News Australia. The VMIA's insurance funding ratio fell from 131 per cent in June 2021 to 103 per cent in June 2023. If the ratio falls below 100 per cent, the cost of paying out claims will be more than the amount of cash being generated.
However shadow finance minister Jess Wilson placed the blame for the VMIA’s financial woes at the foot of the Labor government, citing their failure to ensure compliance among builders.
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