Home insurance QLD

Why is home insurance in QLD so expensive?

Depending on where you live in QLD, you may find it difficult to find affordable home insurance. Largely, this is due to recent weather events (looking at you, Cyclone Alfred) and historic weather events that have wreaked havoc before. It's also due to the rising cost of building materials and the cost of labour.

When this happens, insurers look at certain postcodes and determine them to be riskier than others. As such, they increase the premium to cover the risk of insuring people in that area.

What can you do about it?

First up, switch providers.

Recently, there have been reports of people getting a renewal notice that is more than double what they paid for the year prior. Sometimes this happens for good reason — maybe they made an expensive claim. Other times it happens because the insurer thinks you'll just autorenew or pay it without questioning the cost.

We call this the loyalty tax. It's when you pay much more than you should be because you stayed loyal when you shouldn't have. Despite what some insurers will tell you, there is no reward for loyalty.

So compare your home insurance options and be prepared to switch providers.

Secondly, if you feel that your home insurance premium is unfairly high and could be a form of price gouging, you can lodge a complaint with the Australian Financial Complaints Authority (AFCA).

Struggling to find insurance at all?

For those in Queensland who have experienced a recent climate disaster, like a flood or cyclone, it can be particularly difficult to find house insurance. Not just because it's expensive, but because some insurers are refusing to even give you a quote.

While you can't force an insurer to give you a quote, you can broaden your research.

It's worth noting who the underwriter is for each quote that you get. This is important because all underwriters have a different criteria when it comes to measuring risk. For some underwriters, your postcode might be too risky and they'll refuse cover. For others, it may still be seen as risky but they'll at least offer you a quote, rather than rejecting you from the outset.

So, if you're getting quotes from 5 different insurers but they all share the same underwriter, all 5 will probably reject you.

If you get quotes from 5 different insurers with 5 different underwriters, your chances of finding someone who will at least offer a quote is much higher.

Risk assessment in the Sunshine State is often viewed through a geographical lens, specifically the Tropic of Capricorn risk division. Properties located north of this line (including cities like Townsville and Cairns) are subject to significantly higher "cyclone risk" premiums. Insurers frequently use advanced catastrophe modelling to map these zones, meaning a home in North Queensland can face premiums up to 60% higher than those in the southern regions of the state (Source: The Australia Institute).

Industry credibility is a major factor when selecting a provider. Budget Direct has established a strong reputation, securing the Money magazine "Best of the Best" award for Best-Value Home and Contents Insurance for five consecutive years (2022 to 2026). This award highlights providers that manage to balance comprehensive inclusions with competitive pricing (Source: Money magazine).

When comparing providers, it helps to categorise them by their primary strengths:

• Best for Value: AAMI won Best Value in the 2026 Finder Home Insurance Awards, with Budget Direct and Allianz highly commended.
• Best for Service: NRMA, RACQ and Youi are noted for their high customer service and reliability ratings within the Queensland market (Source: Finder Customer Satisfaction Awards 2025).

Our expert says: My insurance increased almost $2k in 1 year!

"Last September, I received my home insurance renewal and I was shocked – my premium shot up from $280/month to $435! I called my insurer, and they said perhaps my risk rating had changed, as I hadn't made any claims or made other changes. The best they could do was to reduce my cover – no thanks?! – to wipe $40 a month off. I compared on Finder and found the same level of cover elsewhere for $240 a month. After the cyclones earlier this year, I suspect I'll be comparing and switching again this year!"

Sarah Megginson

Money expert + media spokesperson

Home insurance providers in Queensland

How can I find North Queensland home insurance?

If you live north of Rockhampton, you would be familiar with crazy weather conditions that can cause significant damage to your area. Whether it is a tropical cyclone, flooding or heavy storms, these sorts of events could cause you some strife, so finding the right home insurance for you will help you get back on your feet again.

Many insurers will cover North Queenslanders, but the cost will probably be higher than other parts of Australia, due to the area being high risk for weather damage. It's good to be prepared well ahead of time, as most insurers have a 72 hour period without cover immediately after purchasing. Asking for quotes from a number of insurers will help you compare prices, and some insurers may even match or beat the cost of other companies, which is great for your hip pocket.

You may find an insurance broker helpful to discover a home insurance policy that covers all the intricate details you need for your property in North Queensland. Insurance brokers are the experts in this area, and it's their job to provide insurance advice that's in your best interest, allowing you to make an informed decision and find the policy that's right for you.

What do North Queenslanders need to be covered for?

As a high-risk zone, there are several severe weather events that you should be covered for if you're living in North Queensland, including loss or damage from cyclones, floods and storms.

Ensure you're covered for these extreme weather events with your home and contents policy, including flood cover. Some policies do not automatically cover this scenario and it may raise your premiums further, but it's one of the most important weather events to protect yourself from in flood-prone North Queensland. Again, this may be where an insurance broker comes in handy, as they will be able to pinpoint items or scenarios that need cover that you haven't thought of. Double check the policy exclusions, and if there's something you're excluded from that you feel you need, see if you can add it on as an extra before purchasing.

It is critical to check the Product Disclosure Statement (PDS) to confirm if flood coverage is a standard inclusion or an optional add-on. For those in high-risk zones, checking the Queensland Government flood mapping resources can help identify your specific risk level. Be aware that failing to maintain your property, such as neglecting gutter cleaning or basic upkeep, can lead to claim denials for water damage if the insurer determines the damage was preventable.

Your policy will most likely cover you financially for other situations too, including theft, fire, vandalism, explosions. Accidental damage is usually an optional extra rather than a standard inclusion - check whether it is included before you rely on it.

How much does home insurance cost in Far North Queensland?

Due to the frequency of natural disasters, you may find you have to pay more for your premiums. North Queenslanders pay one of the highest premiums for home and contents insurance in Australia because of cyclone risk. As insurers pay out large sums of money for previous events, annual premiums go up.

The below is a rough guide on pricing, based on quotes we got in March 2025. Of course, your own premium will differ based on your own home and personal circumstances. This should be used as a guide only.

• How we got these quotes

  • Quotes were obtained for the same three-bedroom home in Queensland owned by a family of two.
  • Homeowning family of two who moved into their property in November 2023.
  • Quotes were obtained in March 2025 and were for a home and contents insurance

  • Three-bedroom, one 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.

FAQs

• How much is home insurance in Queensland?

  According to Finder research, the average home insurance premium in Queensland is around $3,266 a year. This figure is based on a specific home profile and a limited number of suburbs, so it shouldn't be taken as a typical cost across Queensland. Your premium may be significantly higher or lower depending on where you live.

• Who has the best home insurance?

  According to the 2026 Finder Home Insurance Awards, AAMI offers some of the best value home insurance.

Written by

Peta Taylor

Publisher of Insurance

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Peta Taylor is a publisher at Finder, working across all of insurance. She's been analysing product disclosure statements and publishing articles for over 2 years. Peta is passionate about demystifying complex insurance products to help users make well educated decisions with confidence. Peta is part of Finder's insurance awards team and works alongside editorial and insights experts to bring users the best insurance products every year. See full bio

Co-written by

Jessica Prasida

Travel Insurance Expert

Jessica Prasida brings a decade of experience in the travel industry, including over four years as a travel agent and branch manager at STA Travel. She holds a Bachelor of Business and a Master of Marketing from the University of Technology, Sydney, as well as a Tier 1 General Insurance qualification that complies with ASIC guidelines. An avid traveller herself, Jessica combines her professional expertise with a passion for ensuring safe and enjoyable journeys for all travellers. Jessica was a Travel Insurance Publisher at Finder from 2019 to 2024. See full bio