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Our insurance premium rose by 15%+ last year (2012).
When I asked the SM to find out why, the answer which came from the insurer was that all insurers were increasing premiums by at least 10% (but in some cases up to 45%) for the following reasons:
1) Global catastrophic weather related events (of which the Qld floods was but one). [Hello, global warming].
2) The increased frequency and cost of non-catastrophic claims, such as broken glass, malicious damage and burst pipes.
3) High risk tenants. I think they were referring to short-term rentals and student accommodation.
You might consider asking for an increased excess to keep the premium down, but then you’ll have to pay it when anything happens.