Is your home insurer ripping you off?

Posted: 17 July 2020 11:01 am

Portrait of family outside of home

Study shows one insurer's quote was six times more expensive than another - for the same house.

Home insurance helps us feel safe. If something happens to the roof over our heads, it'll cover the cost. But is that sense of security coming at too high a price?

For some Aussies, it's likely the answer will be yes. That's because, despite a competitive market, Australia's insurers are quoting vastly different prices to cover the same home.

The findings come from NSW government's Emergency Services Levy Insurance Monitor, which collected quotes from 13 different insurers across 11 identical properties, in different locations.

Each insurer was given the specifications for the properties and asked to provide quotes. The research unveiled some major discrepancies when it came to price.

In one case, NRMA gave a quote of $6,758 for a 3-bedroom house in Hinton. In contrast, the second most expensive quote came from CGU for $3,725 and the cheapest quote was given by Westpac, for just $1,040.

In that hypothetical, a homeowner could easily have been out of pocket by more than $5,000 if they failed to compare home insurance providers before buying a policy.

That case is one of the more extreme examples but, across all 11 properties, there was a discrepancy of at least $500 between the least and most expensive policy.

Cheapest policyCheapest policyAverage priceMost expensive policy
Byron Bay$884$1,472$2,091
East Gosford$1,013$1,360$1,933
Medlow Bath$1,014$1,364$2,400

The opportunity to save money was also evident in Finder research, which gathered 222 home insurance quotes across all seven Australian states.

According to that cost research, Aussies could save up to $1,123 a year, just by comparing the cost of home insurance.

Compare home insurance

If you think you're paying too much for home insurance, you could be right. Use the table below to compare policies, and request a quote for more information. Remember, it pays to shop around, so try requesting quotes from multiple insurers.

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.
Westpac Home and Contents Insurance
Monthly or Annually
Save up to 25% when you purchase cover online. Promo code: COVER
St. George Home and Contents
Monthly or Annually
Save up to 25% when you purchase cover online. Promo code: COVER
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.
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.
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.
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.
Seniors Top Home & Contents Insurance
Buy online and save up to 30% on a new home and contents insurance policy. T&Cs apply.
Youi Building and Contents Insurance
Youi Home Insurance takes the time to tailor a premium for you.

Compare up to 4 providers

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