Domestic Building Insurance premiums will increase by an average of 43 per cent, following the Victorian Managed Insurance Authority reporting a $250 billion loss in 2021/22.
Furthermore, this hike comes exactly 12 months after the state government was warned by the Department of Treasury and Finance about “Insolvencies in the residential construction sector” and was presented with “options to de-risk consumers.”
Shadow Minister for Home Ownership and Housing Affordability Jess Wilson said 12 months after first being warned of issues in the sector, Victorian home buyers and home builders were continuing to be punished.
“In the midst of a housing supply crisis, residential builders and Victorians trying to build their own homes are being slugged with an insurance increase to pay for the Andrews government’s failure to act on risks in the sector they were warned about 12 months ago,” she said.
“The financial mismanagement of the VMIA has seen it slide $250 million into deficit, and now hard-working Victorians building their own homes will pay the price.
“Premium increases will not fix the systemic problems in the residential construction sector. That’s why a comprehensive and independent review of the sector is urgently needed to help restore confidence and build a sustainable pipeline of new homes.”
Minister for Housing Colin Brooks was unable to be reached for comment.
