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Homeowners in the Hawkesbury region are facing significant increases in home insurance premiums, driven by escalating climate-related risks and wider industry trends.
Despite not being the most expensive area to insure in the Sydney basin, residential insurance in the Hawkesbury can cost around $7000 a year, according to insurance consultancy Infinity, as against around $2000 per year in Campbelltown for similar levels of cover.
While recent flooding events have dominated headlines, the lasting impact of the Black Summer bushfires is now being reflected in rising insurance premiums.
Local resident Lionel Buckett reported a staggering 80% increase in his home insurance premium, despite having a minimal claims history and implementing extensive fire safety measures. His insurer attributed the increase to government charges, inflation, and regional claims — but offered no specific details. His experience reflects a growing trend among Hawkesbury residents.
The Hawkesbury area is identified as having one of the highest concentrations of properties at risk from bushfires in NSW. A report by Point Data, an analytics firm that advises the financial services sector, found that 13,667 buildings in the Hawkesbury face significant fire danger — highlighting the area’s vulnerability to climate-driven natural disasters.
Nationally, the Insurance Council of Australia has reported a steep rise in insurance claims caused by extreme weather, with annual costs increasing from $4.5 billion to a projected $35 billion by 2050.
The consequences of rising premiums are likely to be more than financial. Homeowners without adequate insurance are potentially more likely to remain behind during bushfires and floods to protect uninsured properties — placing themselves and emergency services at greater risk. The Australian Council of Social Service has previously called for insurance to be treated as an essential service and made more affordable, particularly for low-income households.
In response to growing public concern, a 2024 Australian parliamentary inquiry recommended insurers be required to disclose how premiums are calculated, citing the current lack of transparency as a major stressor for households in high-risk regions.
As climate threats intensify, Hawkesbury residents are urged to review their insurance policies and learn more about mitigation strategies that could reduce risk — and potentially, premiums.
The Gazette wants to hear from residents about their insurance experiences. Are mitigation measures being recognised in your premiums? Stay tuned for more reporting on local bushfire and flood risk strategies here in the Hawkesbury.
