Cheap Home Insurance

If you're after cheap home insurance, there are ways you can reduce the cost of protecting your home. From improving home security to paying your premiums annually, there's options for finding an affordable policy that won't leave you out of pocket. Whilst there's no universally cheaper home insurer, there are ways that you can reduce the cost of protecting your home.

Based on our research the 3 cheapest home insurance companies on our panel are:

1. Budget Direct
2. Virgin Money
3. Westpac

Featuring Budget Direct Home Insurance

Award-winning insurance for your most prized possessions.

• Customers said they saved $338* on average when they switched policies *
• Save 30% when you buy online
• Money magazine's Insurer of the Year in 2017, 2018 and 2019. Awarded Best of the Best in 2019

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Start your search for cheap home insurance here

	Details	Features
Home & Contents Insurance	Save 30% when you purchase cover online	Fire, storm, & theft damage: Yes Rebuilding & repairs to your home: Yes Accidental damage to home or belongings: Optional Underinsurance protection: Yes Full building replacement: No	Go to site More info
Building and Contents Insurance	Youi Home Insurance takes the time to tailor a premium for you.	Fire, storm, & theft damage: Yes Rebuilding & repairs to your home: Yes Accidental damage to home or belongings: Optional Underinsurance protection: No Full building replacement: No	Go to site More info
Home and Contents	30% online discount. Earn 5,000 Velocity Frequent Flyer Points when purchasing a new eligible policy. T&C’s apply.	Fire, storm, & theft damage: Yes Rebuilding & repairs to your home: Yes Accidental damage to home or belongings: Yes Underinsurance protection: Optional Full building replacement: No	Go to site More info
Home and Contents Insurance	Buy online and save up to 10% on your policy.	Fire, storm, & theft damage: Yes Rebuilding & repairs to your home: Yes Accidental damage to home or belongings: Yes Underinsurance protection: No Full building replacement: No	Go to site More info
Home and Contents Insurance	Save up to 25% when you purchase cover online.	Fire, storm, & theft damage: Yes Rebuilding & repairs to your home: Yes Accidental damage to home or belongings: Yes Underinsurance protection: Yes Full building replacement: No	Go to site More info
Home and Contents Insurance	Save up to 25% when you purchase cover online.	Fire, storm, & theft damage: Yes Rebuilding & repairs to your home: Yes Accidental damage to home or belongings: Yes Underinsurance protection: Yes Full building replacement: No	Go to site More info
Home and Contents Insurance	Save up to 20% when you purchase combined Home and Contents online.	Fire, storm, & theft damage: Yes Rebuilding & repairs to your home: Yes Accidental damage to home or belongings: Yes Underinsurance protection: No Full building replacement: No	Go to site More info

Budget Direct Home Insurance Deals

30% online discount on new home & contents insurance

Receive 30% off combined smart home and contents insurance when you purchase cover online.

Last verified 1 Oct 2019

Get deal

Virgin Home Insurance Deals

Save 30% when you purchase Virgin Home and Contents Online

Save 30% when you combine Home and Contents Insurance Price Saver online

Last verified 1 Oct 2019

Get deal

Hume Bank Home Insurance

Buy online and save up to 10% on your policy

Get a quick quote with Hume Bank and apply online for 10% off on your policy.

Last verified 1 Oct 2019

Get deal

Real Home Insurance Deal

Get 20% off

Save up to 20% when you purchase combined Home and Contents cover online.

Last verified 1 Oct 2019

Get deal

Westpac Home Insurance Deal

25% off

Save up to 25% when you combine Home and Contents Insurance online.

Last verified 1 Oct 2019

Get deal

St.George Home Insurance Deals

Save up to 25% when you buy online

Buy a St George Home and Contents insurance policy online and you could save up to 25%.

Last verified 1 Oct 2019

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Which company has the cheapest house insurance?

There's no universally cheapest home insurance company, but our research spills some interesting industry secrets.

We found a difference of $1,335 a year between the least and most expensive home insurance policy for the exact same home. You coukd find a cheaper policy by just shopping around.

See for yourself below.

• Cost for a building worth $500,000
• Cost for a building worth $1,000,000

	Monthly	Yearly
Budget Direct	$97.65	$990.07
GIO	$180.71	$1,936.26
Suncorp	$195.09	$1,934.26
Virgin	$98.41	$999.97
Westpac	$116.18	$1,394.08
Woolworths	$89.59	$977.17

• 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 was $500,000, with an excess of $500.
  • Contents were valued at $100,000.
  • Quotes were obtained in 2018 and were for a combined home and contents insurance policy

  • Homeowning family of two who moved into their property in 2017.
  • 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.

	Monthly	Yearly
Budget Direct	$166.48	$1,690.22
GIO	$264.90	$2,838.22
Suncorp	$288.07	$2,864.10
Virgin	$167.85	$1,707.11
Westpac	$195.21	$2,342.40
Woolworths	$140.25	$1,529.88

• 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 was $1,000,000, with an excess of $500.
  • Contents were valued at $100,000.
  • Quotes were obtained in 2018 and were for a combined home and contents insurance policy

  • Homeowning family of two who moved into their property in 2017.
  • 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.

7 hacks to get a cheaper home insurance policy

Want to save some dosh? Follow these steps.

1. Determine how much cover you actually need.

Determine what kind of policy you need, whether that be building, contents, or both. Ensure your policy adequately covers your needs. Get a proper assessment on your sum insured and replacement value of your contents.

2. Improve your home security.

Security systems and alarms can act as a deterrent to thieves, while smoke alarms can reduce the risk of your home being damaged by fire. Installing these items can reduce the cost of your home and contents premiums.

3. Compare quotes from multiple insurers.

Don’t simply accept the first home and contents insurance quote you get. Compare quotes from at least three different insurers - this is quick and easy to do online - and shop around for a deal.

4. Make your home disaster resistant.

You may be able to save by adding features to make your home more resistant to storms and natural disasters. Consider installing storm shutters, reinforcing your roof, and modernising your heating and electrical systems to reduce the risk of fire or water damage.

5. Pay your premium annually.

Most insurers will let you choose a premium frequency (how often you pay per annum) when applying for cover. Paying annually as opposed to monthly could save you in the long-run.

6. Search for discounts.

If you hold multiple policies with the same insurer you may be entitled to a discount on your home and contents premium. Many insurers will also apply a discount to your premium if you purchase your insurance online. Some providers will offer to cut the price of your cover if you’ve been with them for a number of years. Don’t be afraid to ask for your loyalty to be rewarded.

7. Review your policy at least once a year.

Ensure your policy covers any major purchases or enhancements to your home. This means that you can ensure that you have enough cover for certain items, whilst also noting the reduced value of other albums. Your television might not sell for as high as it did a few years ago, which will reduce your contents cover price.

What impacts the cost of my cover?

The price you pay for cover is generally based on;

• The policy you choose. A comprehensive policy with all the “bells and whistles” will generally cost more than the basic cover option. Assess if a basic policy will suffice for your situation.
• How your home is used. If your home is used for business purposes or is left unoccupied for long periods of time you may be required to pay an additional cost for cover.
• The location of your home. Insurance providers draw on claims data, crime rates, risk of flood and fire among other factors to help assess the level of each location presents. It can be worth taking some time to research where you are buying to determine what could impact the rate you pay for cover.
• Your claims history. An insurance company will often consider previous claims you have made when determining what you pay for cover. Minor and major claims can impact what you will pay so it is worth having a look at different options available and speaking with your insurer about how you will be assessed.
• Style of your home. Insurers will also consider the style/construction period of your home to help them determine a suitable rate.
• The construction standard of your home. The actual design features and construction standard of your home will also impact what you pay with insurers usually rating dwellings in loose categories of average, quality and prestige.
• If your home is built on flat or sloping land. Insurers will also need to know the aspect of the land your home is situated on to help them to determine what you will pay.

Review regularly to avoid underinsurance

Many Australians adopt a ‘set and forget’ approach when it comes to home and contents cover, but this fails to take into account that our circumstances and the assets we own are constantly changing. This leads to a risk of being under-insured, which can end up leaving you significantly out of pocket or even in dire financial straits when disaster strikes.

The best way to combat under-insurance is to regularly review your level of cover to determine whether or not it is adequate and if you could be better off switching to a more suitable option.

To learn more about underinsurance and how to avoid it, head here.

Receive a free quote for home insurance

FAQs

• Q. I’ve changed the security system at my property - do I need to let my insurer know?

  A. Yes, any changes to your security system could change the terms of your insurance. Improvements could also entitle you to a discount because you will be less likely to suffer loss caused by thieves.

• Q. I’ve started running a business out of my home - do I need to tell my insurer?

  A. Yes. Once again, this may affect an insurer’s decision to insure you, and you have a duty of disclosure to let your insurer know anything that may influence their decision to offer you cover.

• Q. Does home and contents insurance cover flood?

  A. Yes, many providers do include flood protection in their home and contents policies. However, make sure to check the fine print for any exclusions that may apply.

• Q. Will my premiums increase if my situation doesn’t change?

  A. It is possible that what you pay for cover may increase even if your situation doesn’t, based on other factors such as where you live.

• Q. What type of security measures may reduce my premiums?

  • Two-cylinder deadlocks fitted to external doors
  • Locks fitted to sliding doors
  • Security screens fitted to windows
  • Single-cylinder locks fitted to windows
  • Alarm system fitted to home

• Q. What sort of policy covers my carpets?

  A. Carpets are generally covered as part of a contents insurance policy.

• Q. Are the possessions of visitors to my house covered?

  A. Many insurers will offer some cover for contents owned by invited visitors, but check your PDS to see what limits apply to cover.

Picture: Shutterstock

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