National polling commissioned by the Climate Council shows that most Aussie homeowners are concerned that extreme weather is creating unaffordable insurance costs, with many considering going without cover.
A YouGov survey of more than 1500 Australians found that 54% of people with home and/or contents insurance are worried that extreme weather (such as bushfires, floods or storms) will make home insurance unaffordable or unavailable where they live. Almost half (46%) have already experienced a hike in premiums.
As climate pollution from coal, oil and gas drives more frequent and severe disasters, one-in-five people (22%) with home and/or contents insurance say they are likely to consider going without insurance if worsening extreme weather keeps pushing up the cost of insurance.
The Insurance Council of Australia last week revealed that extreme weather events in 2025 cost almost $3.5 billion in insured losses from 264,000 claims.
As of 2023, one in 20 Australian households (5.1%) was underinsured, and about one in 30 (3.3%) was uninsured. That equates to more than two million people.
Climate Councillor and economist Nicki Hutley said: “An ever-growing number of Australians are finding themselves caught between an insurance rock and a climate hard place.
“Families know their homes face greater risk from climate-fuelled disasters, and those same risks are helping drive insurance costs — and insurance itself — out of reach as more Australians struggle to pay their premiums.
“It’s a blunt reminder that climate pollution is already costing us - as more disasters anywhere, drive up costs everywhere - and those costs are growing.’’
Climate Councillor and infrastructure expert Janice Lee said: “Unfortunately, this summer is another reminder that more and more often we’re seeing wild and unpredictable weather that burns and floods houses.
“The costs of these events, driven by climate change, hurt families, impact the value of homes and create additional cost of living pressure. In 2025, Australians paid up to $700 more for home and contents insurance premiums than in 2024.
“Reducing climate pollution is critical to Australia’s economic security. Either we invest early to avoid climate change tipping points, or we pay for constant repair and adaptation, with ordinary Australians footing the bill.’’
Polling Key Findings:
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54% of people with home and/or contents insurance are worried that extreme weather will make their home insurance unaffordable or unavailable where they live;
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46% of Australians with home and/or contents insurance report that extreme weather increased their premiums;
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65% of home owners without insurance identify cost as the key barrier, alongside 53% of renters; and
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One-in-five people (22%) with home and/or contents insurance today are likely to consider going without insurance if extreme weather and insurance premiums continue to rise.
ENDS
For interviews please contact Media Advisor Warwick Green warwick.green@climatecouncil.org.au 0439 647 144 or the Climate Council media team on media@climatecouncil.org.au 0485 863 063.
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Note - Paul Smith from YouGov is available to explain polling and methodology. Detailed polling results also available.
Note: All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1508 Australian voters, including 1081 with home and/or contents insurance. Fieldwork was undertaken between 14th January - 22nd January 2026. The survey was carried out online. The figures are representative of the voting population by age, gender, region, income, education, 2025 Federal Election vote and 2023 vote in Voice referendum.