How much does home insurance cost in Australia?

The average home insurance cost is $137 a month but prices can differ massively. Compare and you could save up to $1,653.

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From our research, home and contents insurance costs on average $136.73 a month, based on a home worth $500,000 and contents of $100,000, in a suburban city. But prices differ depending on lots of factors, including the age, value, location and provider you go with, so it pays to compare.

We've laid out average home insurance costs below so you can make sure you don't get ripped off by an expensive home insurance policy.

Check out the average home insurance cost across Australia

We gathered over 201 quotes from 14 different Australian insurers to work out the average home insurance costs from state to state with a building worth $500,000 and contents valued at $100,000. If you live in NSW, you can expect to pay a little bit more than other places. South Australia got lucky with the cheapest average cost for a home and contents policy.

Based on this research, our average home insurance cost is $136.73 a month. You can use this as a guide when you're comparing policies for your home, but remember costs will change based on your circumstances.

Average home insurance costs

Australian statesBuilding & contents insuranceContents only insuranceBuilding only insurance
Average costs$136.73$42.69$112.21

*This table was last updated in February 2021.

It's worth mentioning that these quotes are based on a 3 bedroom, freestanding home. If you live in North Queensland (anywhere above Rockhampton), you might notice that the average cost of your policy is higher due to the risk of cyclones.

Want to hear something cool?
We did even more research and found that you can save up to $1,653 just by comparing quotes of your home and contents insurance policy.

Compare and get a quote

Examples of home insurance costs

To give you an idea, we got quotes from 14 different home insurers for a 3 bedroom house in New South Wales. You can see how the costs change depending on the insurer, this is because benefits also differ between policies.
Keep in mind that the cost of your policy is going to be based on your home and the value of your stuff, so remember to get a quote and compare your options before making a choice.

We found a huge price difference of $1,653 when you compared the cheapest annual policy and the most expensive for buildings worth $1 million. How much can you save by comparing home insurance?

Brand$500,000 Building - Monthly price$500,000 Building - Annual price$1,000,000 Building - Monthly price$1,000,000 Building - Annual priceGet quote
Budget Direct Logo$156.01$1,563.55$203.98$2,071.21Get quote
Virginmoney logo$157.56$1,579.17$205.93$2,091.90Get quote
St. george logo$115.65$1,387.86$194.00$2,328.04Get quote
Domain insure$130.04$1,560.49$172.08$2,064.98Get quote
Picture not described$115.65$1,387.86$194.00$2,328.04Get quote
Woolworths car insurance logo$121.60$1,302.81$187.46$2,008.43More info
Picture not described$187.80$1,861.39$292.00$2,903.36More info
Real insurance logo$121.88$1,305.71$187.87$2,012.74Get quote
Coles Insurance$126.72$1,437.88$261.82$3,058.91More info
AAMI logo$150.02 $1,491.91 $150.02 $1,491.91 More info
GIO Logo$191.62$1,916.26$294.41$2,944.11More info
Picture not described$176.18 $2,114.14 $176.18 $2,114.14 More info
Picture not describedING Home Insurance Logo$157.54$1,579.18$205.94$2,091.91More info
NRMA logo$121.61 $1,406.44 $121.61 $1,406.44 More info
Learn more about our methodology
  • Quotes were obtained for the same 3-bedroom NSW home in Baulkham Hills owned by a family of two.
  • Building replacement costs for all quotes were $500,000 and $1,000,000, with an excess of $500.
  • Contents were valued at $100,000.
  • Quotes were obtained in January 2021 and were for a combined home and contents insurance policy
  • Homeowning family of two who moved into their property in 2020.
  • Three bedroom, 1 story freestanding house on flat ground with brick veneer walls, terracotta tiled roof, no verandas and built in 1980.
  • Windows secured by deadlocks, with no security devices.

How home insurance is calculated

Woman working at home
The cost of a home insurance policy can be calculated with the following things in mind.

  • The type of cover you want. Home and contents, building-only or contents insurance.
  • If you add on extra cover. Like portable contents insurance or accidental damage.
  • The location of your house. If you live in a bushfire, flood or cyclone prone area, you might have to pay more.
  • The features of your house. The type of tiles on your roof and if you have an alarm system installed can impact the cost of your policy.
  • Your claims history. You can avoid an increased premium if you have a good claims history.

How do I buy home insurance?

Compare benefits and get a quote

Think about what's important to you and what you want to protect.

Answer a bunch of questions online

The insurer will ask you these questions so they can assess the cost of your policy.

Make a choice, pay, and get covered

Don't forget to read the PDS to make sure you're covered for what you want.

Compare benefits and get a quote for home and contents insurance

Name Product Building Cover Contents Cover Fire, Storm & Theft Damage Sum Insured Safeguard Online Discount Cheapest way to pay
Budget Direct Home & Contents Insurance
Save 30% on your first year's premium when you purchase a new combined Home & Contents insurance policy online. T&Cs apply.
Australia Post Home & Contents Insurance
Get a $100 gift card when you buy a combined home and contents insurance policy from Australia Post.
Virgin Home and Contents Insurance
Purchase a new eligible Virgin Home and Contents Insurance policy online and you'll also save 30% on your first year’s premium. T&Cs Apply.
Qantas Home and Contents Insurance
Earn up to 20,000 Qantas Points when you apply. Points awarded will be based on your premium. T&Cs & exclusions apply.
QBE Home & Contents Insurance
Save up to 20% on your first years’ premium with a new combined QBE Home and Contents policy online. T&Cs apply.
Westpac Home and Contents Insurance
Monthly or Annually
Save up to 25% when you purchase cover online. Promo code: COVER
Domain Home Buildings & Contents Insurance
Monthly or Annually
Get 15% off your first year's premium when you purchase a new combined Home & Contents Insurance policy online. T&Cs apply.
Youi Building and Contents Insurance
Youi Home Insurance takes the time to tailor a premium for you.
Seniors Top Home & Contents Insurance
Buy online and save up to 30% on a new home and contents insurance policy. T&Cs apply.
Real Top Home and Contents Insurance
Save up to 20% when you purchase combined Home and Contents online.
St. George Home and Contents
Monthly or Annually
Save up to 25% when you purchase cover online. Promo code: COVER

Compare up to 4 providers

Don't cheap out on these things to keep costs low

Here are some common things that people do to try and make their home insurance policies cheaper.

  • Assuming that cover applies. People often think that buying an insurance policy will automatically cover them for everything. Make sure you read your product disclosure statement (PDS) to make sure you understand what's covered and what's not.
  • Choosing the wrong sum insured. A common mistake homeowners make is underinsuring their home and contents so that they can save on their policy. You risk thousands of dollars just to save a couple hundred on the cost of home insurance. To avoid underinsurance, you can get an evaluator to value your home or use an online calculator.
  • Not comparing your options. Looking at home insurance is not the most enjoyable chore, but if you do it right, it can save you thousands of dollars. Read and understand your PDS, and if you're ever unsure of something contact the insurer directly.

Tips to reduce your house insurance cost

There are several simple things you can do to reduce the cost of home insurance, including:

  • Don't be afraid to switch. Unfortunately, loyalty doesn't get us too far these days. If you're finding that you're paying too much to insure your home, don't be afraid to jump ship to someone who is offering you a better deal.
  • Take out multiple policies. If you hold multiple policies with the same insurer - these could be home insurance, car insurance and other types of cover - you may be entitled to a multi-policy discount.
  • Secure your home. If you introduce measures to deter burglars and thieves, for example installing security screens on all doors or purchasing a back-to-base security alarm, you can enjoy cheaper premiums.
  • Choose a higher excess. Increasing your excess amount will result in lower premiums.
  • Look for deals and discounts. Some insurers offer premium discounts for buying online or if you're a senior.
  • Combine cover. You can usually reduce the cost of premiums by combining building insurance and contents insurance together into one home and contents policy.

Compare policies and get a quote

FAQs about home and contents insurance costs

Is my home and contents insurance policy tax-deductible if I work from home?

According to the Australian Taxation Office (ATO), you may be able to claim some of your home insurance policy as an "occupancy expense" if you meet the criteria. This includes, but isn't limited to, your home being the primary place of business and that you have an allocated space in your home for work.

How do I pay for home insurance?

Most insurers will give you an option to pay for your home insurance policy either fortnightly, monthly or yearly. If you pay yearly, you might find that the overall policy is cheaper.

If you choose to do regular payments instead, you can set up a direct debit or scheduled payment with your credit card to avoid missing any due dates. It's important not to miss any payment deadlines since you risk voiding your policy.

What happens if I'm not completely honest with my insurer?

If you're trying to save some money by not disclosing accurate information, you may end up voiding your policy.
If you end up needing to claim, and your home insurer finds out that you've been dishonest they're more than likely to deny your claim.

Is it worth shopping around for home insurance?

Definitely. While it may not be the most exciting thing to do, getting the right home insurance policy is really important. Afterall, you've probably spent a good portion of your life savings on your home right? It makes sense to get the right kind of cover.

Getting a good home insurance policy doesn't have to be expensive, it just has to be enough to cover your home in case the worst were to happen. Compare the benefits first so you know what you're getting, then get a quote from a few providers to see which one fairs well for you.

How much home insurance do I need?

This is the all-important question when choosing home insurance. According to research from the Insurance Council of Australia, 83% of Australian homeowners and renters are underinsured for their home and contents. And if you don't have enough cover to completely replace your home and all your personal possessions, under-insurance leaves you at risk of being significantly out of pocket if disaster strikes.
Trying to cut costs on home insurance cover is simply not worth the risk. Instead, consider tailoring cover to suit your needs by including extra-cost options with your policy. Common additional options include:
  • Cover for the burnout of electric motors (also known as fusion cover)
  • Domestic workers' compensation (only in WA, ACT and Tasmania)
  • Accidental damage cover (some policies include this as standard)
  • Personal valuables cover for items you regularly take with you when away from home, including jewellery and smartphones
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