Did you know?
Switching is easy. In a Finder survey of almost 13,000 Australians, over 1,100 had switched their home and contents insurance in the last 6 months.
Home insurance is an agreement between you and your home insurer. You pay a fee, and in return, the insurer financially protects you from unexpected things that can happen around the home.
When applying, you'll have to answer a bunch of questions about your home and living situation. This is so that the insurer can assess your risk and give you a quote based on your needs.
So what happens then?
Something bad happens, like a tree falling on your roof or a storm
You contact your home insurer and make a claim
Your claim is approved or denied (depending on the situation)
Comparing home insurance online is quick and easy, but there are some key terms you'll need to understand before getting started:
Premium. A premium is the price the insurance company will charge you for cover. Most companies will let you choose if you want to pay on a fortnightly, monthly or annual basis.
Excess. This is the amount of money you have to pay before your insurance company will pay out any claim. So if you have a $500 excess and a storm blows a hole in your roof that costs $3,000 to repair, the insurer will pay out $2,500.
Product disclosure statement. This is the legal document that outlines the ins and outs of your policy. It's also known as a PDS.
Insured events. Most insurers have a list of common events that you'll be covered for with home insurance. This includes things like fire, malicious damage, water damage and theft.
Nominated sum insured. This is the amount you insure your house or contents for. It's super important that this figure is accurate. If the sum insured is too low, it could leave you out of pocket if you ever have to repair or rebuild.
Sum insured safeguard. This is an optional benefit offered by some insurance companies that kicks in if your home needs to be repaired or rebuilt, but your sum insured isn't enough to cover it.
Are you new to home insurance?
Never looked into home insurance before? No worries! We've got a guide for first time homeowners to help you understand home insurance and choose the right policy for you.
If you rent out your property, you can see our guide to landlord insurance.
If you own a commercial building, you can see our guide to strata insurance.
Did you know?
In insurance-speak, home insurance refers to the actual structure of your home as well as more permanent features. It's sometimes referred to as buildings insurance. If you want the items inside your home covered, you'll have to get home and contents insurance.
There's an easy way to figure out which type of home insurance might be best for you:
| Who it suits | Who it doesn't suit | |
|---|---|---|
| Home and contents | ✅ People who own the home they live in ✅ Anyone who wouldn't be able to afford major building repairs to their home ✅ Anyone who wouldn't be able to replace their belongings easily or affordably ✅ Anyone who lives in an area prone to natural disasters | ❌ Renters ❌ Apartment owners who already have strata insurance to cover their building ❌ People who don't have many belongings or very expensive belongings |
| Home/buildings | ✅ People who own their home but don't have many belongings or very expensive belongings ✅ Anyone who wouldn't be able to afford major building repairs to their home ✅ Anyone who lives in an area prone to natural disasters | ❌ Renters ❌ Apartment owners who already have strata insurance to cover their building |
| Contents | ✅ Renters ✅ Apartment owners who already have strata insurance to cover their building ✅ Anyone who wouldn't be able to replace their belongings easily or affordably | ❌ People who own the home they live in ❌ People who don't have many belongings or very expensive belongings |
If you're trying to find the best home insurance policy, check out our guide. We've researched some top picks and can help you figure out how to find the best policy for you.
Compare the benefits of different policy types.
Home and contents insurance policies vary between different insurers, so they have slightly different benefits. However, here is a generalisation of what's usually covered and what's not covered with home insurance.
| Is this covered? | Home and contents insurance | Building insurance | Contents insurance |
|---|---|---|---|
| Storm and rainwater damage | |||
| Escape of liquid, such as a burst pipe | |||
| Fire damage | |||
| Theft and attempted theft | |||
| Malicious damage and vandalism | |||
| Breakage of glass, ceramics and sanitary fixtures | |||
| Explosions | |||
| Impact damage, such as a fallen tree | |||
| Lightning strikes | |||
| Temporary accommodation | |||
| Flood | |||
| Earthquake or tsunami | |||
| Accidental damage | |||
| Portable contents | |||
| Motor burnout | |||
| Deliberate or negligent damage | |||
| General wear and tear | |||
| Asbestos | |||
| Mould, termites or vermin | |||
| Damage from renovations | |||
| If your home is unoccupied |
In most cases, yes.
Of course, we can't force you to do anything, but buying a house is usually one of the biggest financial decisions of your life so it makes sense to protect it. Also, if you've planned to take out a mortgage, most lenders won't approve your application without adequate home insurance.
If you're still unsure, ask yourself the following questions. If you answer YES to any of them, you should really consider home insurance.
Would I be stuck finding somewhere else to live if my home was suddenly uninhabitable?
Would I struggle to pay for major home repairs?
Do I keep anything valuable in my home that would be hard or expensive to replace?
Do I live in an area that is prone to natural disasters?
Do I live in a high-crime area where burglary or vandalism might occur?
The cost of home insurance varies massively depending on the value of your home and its location, among other factors.
However, Finder research found that the average cost of a home and contents insurance policy is $136 a month, based on a suburban home worth $500,000 and contents of $100,000.
The Emergency Services Levy Insurance Monitor, a government initiative that tracked the cost of home insurance across NSW, returned a slightly lower average premium of $102 a month.
Compare policies and get a quote
Home insurance is a big purchase, so we understand you want to get it right. Here's how to make sure you're getting a good deal:
Know the specs of your homeYou'll need to know the details of your home, such as when it was built and what materials were used.
Value your belongings This can be tough. We recommend going room to room and slowly building up a valuation or bring in a professional to do it.
Compare online and request quotes You can use our comparison table to compare benefits from Finder partners side by side and then request a personalised quote.
We recommend requesting a few and comparing.
Check the PDSBefore you buy home insurance, always check the product disclosure statement. It'll tell you everything that is and isn't covered by your policy.
Check for offers Some insurers have sign-up deals for new customers that could save you as much as 30% – always check before purchasing.
For a lot of people, yes. Finder research shows that the average cost of home insurance is $1,344 a year, based on a suburban home worth $500,000 and contents of $100,000.
That means, for $1,344, you'd be receiving $600,000 worth of protection. If a strong storm or a fallen tree destroys your roof, the average cost to install a new roof for a moderate-sized home is around $7,500.
Plus, even relatively minor damage can easily cost more than $1,344. If a waste pipe burst in your home, not only would you be hit with plumbing costs, you'd also have to look into replacing furniture or belongings.
Anyone looking for home insurance has heaps of options to choose from. We've listed just some of Australia's major providers below.
If the brand you're looking for isn't here, check out our directory.
Did you know that home insurance can also cover temporary housing for your pets if your home became uninhabitable? It can also cover your holiday home if you're not always there. Here are some other things that home insurance can cover you for.
Back to topHome insurance can be a major expense for lots of Aussies, but there are ways to make your premiums more affordable.
Finder cost research shows you can halve the cost of your insurance premiums just by comparing online. Why wouldn't you?
Lots of insurers offer sign-up deals that can reduce your premium by up to 30%. Always check for offers before finalising.
Opting for a higher excess will reduce the cost of your premium. Just be sure the excess will be affordable in the event of a claim.
There's nothing wrong with switching insurers on a regular basis. It's the best way to make sure you're getting a good deal.
There are heaps of home insurance deals that can save you up to 30% on your premium. That means if you have an annual premium of $1,200, you could save $360.
Receive $250 worth of smart sensors with Honey Home Insurance
30% online discount on new home and contents insurance
16% off on your premium for the first year + $10 credit
Earn up to 30,000 Qantas Points with Qantas Home
Get up to 20% off your first year's premium with QBE Building and Contents Insurance
Get 10% off when buying Home and Contents Insurance from Australia Post
You pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees.
You save time. We spend 100s of hours researching home insurance so you can sort the gold from the junk faster.
You can trust us. We say it like it is. We aren't owned by an insurer and our opinions are our own.
Start comparing home insurance
Finder research shows nearly 5 million Australians may be putting their homes at risk by not reviewing their insurance.
Read more…
After a record-breaking year of climate disasters and soaring building costs, it's no surprise home insurance costs are up too - but you can still save.
Read more…Icons made by Vectors Market, Freepik from www.flaticon.com
It's too soon to tell but things aren't looking good.
Get $1,000+ when you sign up for a frequent flyer credit card.
Ethereum ETFs look set to hit US$1 billion volume on first day.
SPONSORED: Don't chuck your modem out the window! We'll show you some simple tips to help enhance your internet speed.
SPONSORED: Take off into cyberspace at rocket speed with a faster connection!
Find all the weekly tips from our Dollar Saver newsletter and see how you could save.
You can score up to 25,000 Qantas Points, but is the interest rate good enough?
Ditch the buffering blues or overpriced internet. Compare NBN plans packed with speed and sweet, sweet deals.
Some people with older handsets may miss out.
Offers a 0% introductory rate on balance transfers for 28 months (with a 1% BT fee) and a competitive purchase rate.
