Domestic building insurance premiums are sufficient. The report found premiums are at sufficient levels to cover expenses, risks and long-term claim costs. It found while claim costs increased between 1 July 2016 and 30 June 2018, the costs associated with handling and administering claims (expenses) declined significantly.
Premium coverage is not excessive. The report found premiums are reasonable and not set above the level required to cover expenses, risks and long-term claims costs. The VMIA decreased its premiums by 22.5 per cent on 1 July 2017 due to expected large cost savings from its new multi-agent distribution model.
Underwriting standards conform to commercial standards. While the VMIA provides domestic building insurance to some builders it regards as 'higher-risk', it manages the additional risk by placing conditions on their eligibility.