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How much does home insurance cost in Australia?
The average home insurance cost in Australia is $143 but it can vary massively from home to home. That’s why it’s so important to compare policies.
There are many things that will affect home insurance costs like the location of your house, when your home was built, and the value of your contents.
This being said, here are some ballpark figures to give you a better understanding of what's involved and how much it can differ.
Check out the average home insurance cost across Australia
We gathered over 200 quotes from 16 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 $142.92 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
NSW
$160.75
$46.22
$138.64
VIC
$160.28
$63.95
$140.67
QLD
$160.63
$40.15
$143.86
SA
$126.39
$41.67
$101.79
WA
$159.78
$44.02
$140.43
ACT
$113.80
$36.38
$93.91
TAS
$118.80
$36.88
$97.59
Average costs
$142.92
$44.18
$122.41
*This table was last updated in August 2022. It's worth mentioning that these quotes are based on a 3 bedroom, home unit. 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.
Are the costs of home insurance going up?
Long story short – yes.
Recently, we've heard a lot about homes getting hit with massive increases in their yearly premiums, with some people paying as much as 104% more for a policy. There are 2 main reasons for this: inflation and global warming.
In the last few years alone, Australia has been hit by some of the worst floods and bushfires on record, causing millions of dollars worth of damage and leaving many homeowners out of pocket. As a result, insurers have had to raise prices.
We've pulled our historical pricing data to see how much prices have changed over time. Check out our stats.
Between January 2021 to August 2022, the average home insurance policy in Australia has increased by $72 a year. This doesn't sound like much so it's important to understand the context behind this stat:
This average does not include North Queensland which has seen a significant increase.
City areas which are more populated but have less risk, pull the average down.
If your house type or location is deemed riskier, then you can expect to pay a lot more than $72 extra a year.
Our data shows that some homes in North Queensland could be paying around $1,444 more annually. This is 24% more than the previous year and is the highest average of all the areas we researched.
Why North Queensland? The area is notorious for destructive cyclones and storms, and it's not likely to get better. Simply put, the higher the risk, the higher the premium.
See how pricing has changed on average across Australia since January 2021. This research was collected using a $500,000 building sum insured amount and $100,000 for contents.
Examples of home insurance costs
To give you an idea, we got quotes from 16 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 $1,039.38 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?
Compare benefits and get a quote for home and contents insurance
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When buying my first home, i knew home insurance was a must, but had no idea how the costs worked. I quickly worked out that my policy premium was really impacted by two major things - the location and the 'sum insured'. I used the Insurance Council building calculator to work out exactly how much it would cost to re-build my home. Turns out, i'd over insured in the first year, so reduced my policy by $50,000 coverage which knocked $200 off my annual bill.
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 under-insuring 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 under-insurance, 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 a single home and contents policy.
You pay the same as buying directly from the home insurer. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare policies.
Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of home insurance brands, making it easier for you to find a good deal.
We're here to help
Since 2014, we've helped 150,000+ people find home insurance by explaining your cover options simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.
FAQs about home and contents insurance costs
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.
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.
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.
Definitely. While it may not be the most exciting thing to do, getting the right home insurance policy is really important. After all, you've probably spent a good portion of your life savings on your home – 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.
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 under-insured 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:
Gary Ross Hunter is an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146).
Camera insurance is a must-have if you carry a lot of expensive gear. Find out how to get cover through either contents insurance or speciality camera insurance.
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Hi May i have an estimate of a $25,000 contents only insurance plus $15,000 jewellery
Regards Gill
Hi Gill,
We’re a comparison site so we don’t offer insurance directly, but you can enter your details and compare your options here:
https://www.finder.com.au/home-insurance/home-and-contents-insurance
Hope this helps!