Nearly one in three older Australians renting privately — 31% — live in a home that is both unaffordable and in poor condition, according to research commissioned by the Housing for the Aged Action Group. That means they are paying too much for a place that may have leaky roofs, faulty wiring, or ageing plumbing — exactly the kind of problems that make insurance harder to get and more expensive to keep. For someone on a fixed pension or part-time work in retirement, that double hit can be the difference between having cover and going without.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
These numbers point to a problem that goes beyond just high rent. Older homes — especially those built before modern building codes — come with higher maintenance costs and more things that can go wrong. Insurers know this. They price for it. And when your housing costs already eat up more than a third of your income, there is little left to pay for premiums that keep climbing. The result is a growing group of older Australians who are underinsured or not insured at all, living in homes that need the most protection. Here’s what you actually need to know.
What the Research Actually Reveals About This Double Squeeze
What this research makes clear is that housing precarity — the state of living in housing that is insecure, unaffordable, or in poor condition — is not a separate issue from insurance. They are the same problem. When your home is expensive and falling apart, insurance becomes a luxury you cannot afford but cannot afford to skip.
What I tend to notice when looking at this data is how the financial strain compounds. It is not just that rent is high. It is that high rent leaves no room for home maintenance, which makes the property deteriorate, which pushes insurance premiums up, which then makes the whole situation more precarious. Breaking that cycle starts with understanding the actual numbers.
The Numbers That Matter: Rent Burdens, Housing Conditions, and What They Cost
The standard measure of housing affordability is the 30% threshold — if you spend more than 30% of your gross income on housing costs, you are considered to be in housing stress. Among older Australians on very low incomes, four out of five exceed that threshold. Two in five pay more than 50% of their income on rent, according to Productivity Commission research. That leaves very little for anything else, including insurance.
The table below shows how rent burden tiers map to the practical reality of paying for insurance on an older home.
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| Rent burden | Share of older low-income renters | What’s left for insurance and other costs |
|---|---|---|
| Less than 30% of income | 19% | Some room for insurance, but still tight on a fixed income |
| 30% to 50% of income | ~40% | Insurance becomes a trade-off with food or medical costs |
| More than 50% of income | ~40% | Insurance is often dropped or never taken out |
What this means in practice: if you are an older renter in a home built before 1990, the likelihood that it has ageing electrical systems, old plumbing, or roof issues is higher. Insurers either decline cover, add exclusions for pre-existing conditions, or charge a premium that reflects the risk. And when 79% of people in this situation already say housing negatively impacts their finances, there is simply no buffer left to absorb those higher costs.
Where Older Homeowners and Renters Get Tripped Up on Insurance
Assuming an older home is automatically uninsurable
Many older Australians assume that because their home is old, no insurer will touch it. That is not quite right. Insurers will cover older homes — but they often exclude specific risks like pre-existing roof leaks, outdated wiring, or termite damage that existed before the policy started. The mistake is not checking what is actually excluded. A policy that looks cheap may leave you exposed on exactly the things most likely to go wrong in an older property. Always read the product disclosure statement for exclusions on common property insurance exclusions before signing.
Not updating the sum insured as costs rise
Building costs in Australia have risen sharply. If you insured your home five years ago for $300,000, the replacement cost today could be $400,000 or more. Underinsurance is one of the most common claim denials — you only find out when it is too late. For older homeowners on fixed incomes, the temptation is to keep the premium low by keeping the sum insured low. That is a gamble that often fails. The fix: get a replacement cost estimate every two years, even if it means paying a bit more in premium.
Forgetting that contents need cover too
Older homes often have older contents — furniture, appliances, personal items — that are expensive to replace even if they are not worth much second-hand. Contents insurance is often separate from building insurance, and many renters skip it entirely. The research shows 88% of older private renters in poor-condition homes cannot save or invest. If a fire or flood destroys their belongings, there is no savings buffer to replace them. A basic contents policy costs far less than replacing everything from scratch.
Waiting until after a problem to shop around
Once your home has developed a leak, a crack, or an electrical fault, insurers will either refuse cover or load the premium heavily. The time to compare policies is when the home is in reasonable condition. For older homeowners, that means doing a basic maintenance check — roof, plumbing, wiring — before applying for a new policy. A proper comparison of property insurance policies should happen annually, not after something goes wrong.
Practical Steps for Insuring an Older Home on a Fixed Income
Start with a home condition audit
Before you talk to any insurer, walk through your property with a checklist. Roof age and condition, electrical switchboard type (old fuse boxes vs circuit breakers), plumbing material (copper vs galvanised steel), and any signs of damp or termites. Insurers will ask about these things. Knowing the answers upfront means you can shop for policies that match your actual risk profile rather than getting surprised by exclusions later. If you are renting, ask the landlord or agent for the most recent building inspection report — you are entitled to know what condition the property is in.
Bundle where it makes sense
If you own your home and have a car, bundling home and auto insurance with the same provider often brings a discount. For older Australians on tight budgets, even a 10–15% saving on premiums can make the difference between keeping cover and dropping it. Just make sure the bundled policy still covers the specific risks of an older home — some bundle deals use standard policies that exclude older property issues. Check the fine print or use a home and auto insurance bundle comparison to see what actually applies to your situation.
Consider security upgrades that lower premiums
Installing a video doorbell, sensor lights, or a basic alarm system can reduce your contents insurance premium. Insurers see these as risk reducers. For an older home that may already have higher base premiums, every discount helps. A device like the Arlo Essential Wireless Video Doorbell gives you 1080p video, night vision, and two-way audio — the kind of feature insurers look for when offering a security discount. It is a one-off cost that can reduce your premium year after year.
Know what to do if a claim is denied
Claim denials are more common for older homes because insurers often attribute damage to wear and tear or pre-existing conditions. If your claim is denied, ask for the specific policy clause they are relying on. You have the right to request an internal review, and if that fails, you can escalate to the Australian Financial Complaints Authority (AFCA). Many older Australians accept a denial without challenging it because they assume the insurer is right. That is not always the case. Understanding why insurance claims are denied gives you a better chance of getting a fair outcome.
Future changes to watch
The National Housing and Homelessness Plan, currently being developed by the Australian Government, is expected to include recommendations on rental standards and housing quality. If minimum rental standards are introduced, landlords of older homes may be required to bring properties up to a basic condition level before they can be leased. That could reduce some of the insurance risks associated with older rental properties. Separately, the Australian Housing and Urban Research Institute (AHURI) has called for better integration of housing policy with health and ageing agendas — which could lead to subsidies or support for older Australians struggling with housing and insurance costs. These are not law yet, but they are worth watching.
Frequently Asked Questions About Older Homes and Insurance
Can I get home insurance for a house built before 1950? ▾
Does renters insurance cover older homes differently? ▾
What happens if my landlord’s insurance doesn’t cover the building adequately? ▾
Are there government programs to help older Australians with insurance costs? ▾
Does installing safety features really lower premiums on an older home? ▾
Why This Problem Isn’t Going Away — and What It Means for Your Planning
The proportion of older Australians in private rental housing has increased, and more people are carrying mortgages into retirement, according to ABS census data analysed by researchers. That means more older people will be living in older homes — because the private rental stock in Australia tends to be older than owner-occupied housing — and facing the same insurance hurdles. Without changes to rental standards, housing supply, or insurance regulation, the gap between what older homes need and what their occupants can afford will keep widening.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Top Tips for Tailoring Your Property Insurance in Australia.
Sources and Further Reading
Contents Insurance Catastrophes: What’s Really Covered Inside Your Aussie Home — A detailed breakdown of what contents policies actually cover, useful for older renters and homeowners reviewing their cover.
Housing for the Aged Action Group (2026). Older Australians vulnerable to housing precarity. 🔗
Productivity Commission (2023). Renters affordability report. 🔗
ABS Census 2021. Housing and homelessness estimates. 🔗
AHURI (2023). Housing risk among older Australians. 🔗
