Home and strata insurance in the Pilbara and Kimberley

Why cover costs more in northern Western Australia

Pilbara and Kimberley towns face severe cyclones, storm surge on the coast and river flooding inland. Towns are far apart, so trades and materials cost more after an event. Few insurers write cover here, which limits choice.

The Australian Reinsurance Pool Corporation (ARPC) said in its cyclone pool statistics report for September 2025 that the highest pool premiums are concentrated in five areas. Two of them are in this region: Kununurra to Broome, and the Pilbara. The same report listed Cyclone Zelia among the main sources of pool claims as at 31 October 2025.

What premiums look like

Northern Western Australia has the highest average home premiums in the country. The second interim report of the ACCC's Northern Australia Insurance Inquiry (2019) found the average home and contents premium in Port Hedland was $5,256, almost four times the $1,400 average outside northern Australia. It estimated that about 40 per cent of homes in north Western Australia had no building insurance, the highest rate in the north.

The ACCC's fifth and final insurance monitoring report (June 2026) found the average home and contents premium in north Western Australia was almost $5,000 in 2024-25. The average for the rest of Australia was $2,310. Measured per $100,000 of sum insured, the average combined home and contents premium in Karratha fell 15 per cent after insurers joined the cyclone pool.

Strata is under more pressure. The ACCC's fourth insurance monitoring report (July 2025) found the average strata premium in north Western Australia rose 18 per cent to more than $18,000 a policy. It also found that Karratha schemes paying the highest premiums saw a 23 per cent fall after the pool.

The cyclone reinsurance pool

The pool began on 1 July 2022. It is an Australian Government scheme run by ARPC. It sells cyclone reinsurance to insurers at a lower cost than the private market, supported by a $10 billion government guarantee that is reinstated each year. Large insurers had to join by the end of 2023 and small insurers by the end of 2024.

What it covers

Cyclone damage from wind, rain, rainwater runoff, storm surge and riverine flood.
Losses from the time a cyclone starts until 48 hours after it ends, as declared by ARPC from Bureau of Meteorology observations.
Home building, contents and landlord policies, residential strata, and small business property policies with a total sum insured of up to $5 million.

What it does not do

It does not apply to flood or storm damage with no link to a declared cyclone, or to bushfire.
It does not widen your policy. Flood or storm surge exclusions in your policy still apply.
It does not pay households. Claims go to your insurer in the usual way.
It does not remove the other costs in a premium. The ACCC's 2026 report said claims costs, other extreme weather and inflation keep pushing premiums up.

The Australian Government announced a review of the pool's legislation, the Terrorism and Cyclone Insurance Act 2003, in September 2025.

Practical steps

Ask about mitigation discounts. ARPC reports that pool discounts apply for roller door bracing, window protection, roof tie-downs and roof replacement. The ACCC's 2026 report found some insurers are yet to set up a way to recognise these upgrades. Ask what each insurer recognises before you spend money.
Keep building records. The year of construction, roof type and any engineering certificates can affect a quote. Have them ready.
Check your sum insured. Rebuilding in a remote town costs more than in Perth. Use a calculator that asks for your postcode, or get a valuation. Allow for debris removal and professional fees.
Compare excess options. A higher excess cuts the premium. Ask whether a separate cyclone excess applies. Pick an amount you could pay at short notice.
Get more than one quote. Few insurers quote in the north, and their prices and cover can differ. Compare the product disclosure statements as well as the prices.
Consider a local broker. Strata schemes, older buildings and properties with past claims can be hard to place. A licensed broker can approach insurers, underwriting agencies and Lloyd's coverholders that do not sell direct. Ask how the broker is paid.

If cover is declined or unaffordable

Ask for reasons. If an insurer refuses, cancels or does not renew cover, ask in writing why. The Insurance Contracts Act 1984 requires a written answer.
Use the complaints path. Complain to the insurer first. If you are not satisfied with the outcome, you can go to the Australian Financial Complaints Authority (AFCA). AFCA is free and considers home, contents and strata title insurance complaints.
Ask about hardship help. Part 10 of the General Insurance Code of Practice applies when you owe an insurer money, such as an excess. The insurer can allow more time, instalments or a reduced amount, and must decide within 21 calendar days. The ACCC's 2019 report noted that insurer hardship programs typically help with an excess and not with premiums. Ask whether you can pay the premium by instalments and whether that costs more.

Sources

Last checked: 2026-10-06