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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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 states||Building & contents insurance||Contents only insurance||Building only insurance|
*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.
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 price||Get quote|
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
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
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.
FAQs about home and contents insurance costs
Is my home and contents insurance policy tax-deductible if I work from home?
How do I pay for home insurance?
What happens if I'm not completely honest with my insurer?
Is it worth shopping around for home insurance?
How much home insurance do I need?
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