How to find the right home and contents insurance cover in NSW.
The site of Australia’s first European settlement and now the country’s most populous state, New South Wales is home to more than 7.5 million people. Around one-third of all Australians call NSW home and the premier state has more homes to be insured than anywhere else in Australia. Home insurance provides essential protection against a wide range of unexpected events and mishaps, from fire and storm damage to flood, falling trees and theft. With so many policies available from scores of insurers, finding the best home and contents insurance in NSW is a tricky task. Here’s how to find the right policy for you.
Home insurance provides essential protection against a wide range of unexpected events and mishaps, from fire and storm damage to flood, falling trees and theft. With so many policies available from scores of insurers, finding the best home and contents insurance in NSW is a tricky task. Here’s how to find the right policy for you.
Find the best* home insurance policy for New South Wales
Why should I get cover for my home?
There are several reasons why home insurance is essential for every Australian homeowner, including:
- It protects your most valuable asset. Your home is likely to be the most expensive purchase you ever make, so it makes financial sense to insure it. Home and contents insurance covers the cost of repairing, rebuilding and replacing your home and treasured possessions when disaster strikes.
- Things can go wrong at any time. A freak storm, a burst pipe, opportunistic thieves – accidents and unexpected events can happen at any time. But while there’s no way to predict the future, home insurance can protect you against any nasty surprises.
- It gives you peace of mind. Home insurance in NSW is all about peace of mind, ensuring that you will be financially protected no matter what the future holds.
- It's usually a home loan requirement. Many lenders will require you to take out home insurance cover before agreeing to offer you a home loan.
What kind of things should I consider before taking out insurance in NSW?
NSW residents may also be exposed to a number of specific risks and it’s important to make sure you’ll be covered before taking out a policy.
Residents of some areas of northern NSW may need protection against flood and storm damage, while those in rural areas may benefit from protection against bushfires.
On the other hand, apartment dwellers living in Sydney will need to make sure any policy they choose has adequate cover for a strata-titled property.
Before deciding on the best home insurance policy for you, you’ll need to consider a wide range of factors. How much cover do you need? Do you want buildings only cover or cover for your contents as well? How much would it cost to replace my home and contents if they were completely destroyed?
What type of home insurance can I get in NSW?
There are three types of home insurance available in NSW:
- Home insurance. Also referred to as building or building-only insurance, covers your physical buildings against loss or damage.
- Contents insurance. Contents-only policies cover the cost of repairing or replacing your household items and possessions.
- Home and contents insurance. Home and contents insurance allows you to combine building insurance and contents insurance under one comprehensive policy.
How much does home insurance cost in NSW?
It’s impossible to give a one-size-fits-all answer to this question due to the simple fact that the cost of home insurance in NSW depends on a wide range of factors. Including:
- The level of cover you select. The higher your insured sum, the more you’ll pay for cover.
- The type of cover you select. Combined home and contents insurance costs more than standalone building or contents cover, while premiums also increase when you add optional covers to your policy.
- Your home. The construction of your home can also affect the price. For example, if you live in an area prone to bushfires or your home was made of bushfire-resistant materials you could enjoy cheaper premiums.
- Where you live. Location can also affect premiums based on the likelihood of claims occurring. Living in an area prone to severe storms or a suburb with high break-in rates could drive premiums up.
What insurers can I access in NSW?
Home and contents insurance providers in Australia generally don’t confine their policies to just one state or territory. With this in mind, you can compare and choose cover from a wide variety of insurance providers. finder.com.au’s panel includes an extensive selection of leading Australian insurers, including:
Are there any exclusions and additional costs I should be aware of in NSW?
Every home insurance policy has a list of general exclusions with situations, events and circumstances in which your insurer will not provide any cover.Common exclusions you may need to watch out for include:
- No cover when your home is left unoccupied for an extended period of time
- No cover for renovations or extensions
- No cover if you fail to keep your home in good repair
- No cover for actions of the sea, such as high tides
You can find out more about common home insurance exclusions in this handy guide. It’s also important to be aware of a couple of extra charges that affect home insurance in NSW:
- Stamp duty. Stamp duty applies to NSW home insurance at a rate of 9% of the premium amount.
- Fire and emergency services levy. This levy currently applies to home insurance premiums in NSW, but is in the process of being replaced by a fee added to council rates notices.
There are many factors to consider when choosing home insurance in NSW, but if you’re willing to shop around and compare your options you’ll soon be able to find the perfect policy for your needs.
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* The offers compared on this page are chosen from a range of products finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms "Cheapest", 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your personal financial circumstances when comparing products.