Home insurance comparison

What is home and contents insurance?

Your home is likely to be the most expensive thing you own, so it's worth protecting. Home and contents insurance aims to do just that. It's a type of insurance that protects the physical structure of your house and your personal belongings inside.

If your home gets damaged by fire, flood, burst pipes or a storm, home insurance helps cover the cost.. Here's a little bit about what it can cover:

• Fire, storm and theft damage
• Flood - this is often an optional extra, it isn't included as standard in all policies
• Accidental damage
• Escape of liquid (like a burst pipe)
• Malicious damage (like vandalism)

If any of these events occur (plus some others), then you can be compensated for both the expense to repair your home and the expenses you incur while having to live outside of your home.

Home and contents insurance aims to ease the financial burden of sudden, major home repairs that can leave Aussies extremely out of pocket. It's also incredibly convenient when you're under stress and need to get on top of repairs ASAP.

What are the different types of home insurance?

There are four main types of home insurance:

Building insurance

This is straight up home insurance. It includes cover for the home, so the actual building, only. These policies are ideal for landlords who want to protect their investment while it's rented out.

Contents insurance

This insures the belongings inside your home, like your TV or oven. Contents-only insurance is ideal for renters who only need to cover their items within the home.

Home and contents insurance

As the name implies, this is a combination of the two. This means your home building and your contents are insured, ideal for home owners.

Landlord insurance

This can include building insurance and/or contents insurance, based on what you need as a landlord. It's designed to protect your investment home while others are renting it.

How to get the best home and contents insurance policy

Every Aussie wants the best home and contents insurance policy for their home. But the truth is, everyone's idea of "best" looks different. For some, the best policy is an affordable one, for others, it's a policy with comprehensive coverage.

While we can't tell you exactly which policies are the best for your circumstance, we can give you a fantastic starting point. Every year, Finder rounds up some of the best home and contents insurance policies for our annual Finder Awards. We do this to help you find some of the top notch policies in the market.

Our judge analysed 52 policies from 31 providers and compiled a list of the policies they believed were worth a look. If you would like to find out who took out the top spots for this year, head on over to our home insurance Finder Awards page.

In 2026, AAMI received a Finder Award for Best Value Home Insurance. This was because the insurer offered a wide range of cover across key policy features at a decent price point. Allianz received the 2026 Finder Award for Best Comprehensive Home Insurance, as it delivered higher than average benefit limits, flexible excess options and a high satisfaction rating from its customers.

Here's what some of our experts have to say...

Our expert says

"The best way to save money on your home insurance bill is to compare policies every time you go to renew. Sometimes, this doesn't even mean switching! It can be as simple as being informed about other prices so you can negotiate with your current insurer. I did this with my most recent home insurance bill and saved $200."

Peta Taylor

Publisher of Insurance

Our expert says

"Every insurer prices its risk in really different ways, which means you could get two very different quotes on the exact same house and same policy holder. That's why you're almost always going to pay over the offs if you don't shop around regularly. Call your insurer and ask for a better deal and if they can't do anything, do a quick comparison – for 60 minutes of your time, you could save hundreds or even thousands of dollars."

Sarah Megginson

Money expert + media spokesperson

How to find cheaper home insurance

Home insurance premiums are getting more and more expensive so it's critical to ensure you're not paying more than you need to. Here's a few tips to get your home insurance bill down a bit lower:

• Compare your options. The best way to cut your bill down is to compare your options. According to Finder research, 69% of home insurance customers have said their premiums have gone up within in the last 12 months. Often, insurers will increase your premium every year because they're assuming you'll let it auto renew and won't question the increase. Loyalty does not pay and there's almost always money to save by switching.
• Call your insurer. Often, your insurer is more interested in keeping you as a customer than watching you go elsewhere, so if you call and ask if they can reduce your premium, they'll likely do this. I called my insurer when my home insurance was up for renewal and said "Is there any flexibility on the price?" and they immediately dropped it by $200.
• Use sign up discounts. Sign up discounts can save you hundreds simply for being a new customer and signing up online. It's a great way to save! Hot tip: look for percentage discounts rather than a dollar figure discount. 15% off is almost always going to be better for you than $50 off.
• Increase your excess. The higher your excess, the lower your premium. However, your excess needs to remain affordable for you in the event that you have to make a claim, so do this responsibly.
• Review your policy inclusions. If you're looking to save, it can be worthwhile looking at your policy and seeing if you've got any unnecessary inclusions that are driving your premium up. I once had an insurer tell me that I needed flood cover, but I live on a hill. A really big hill.

What does a typical home and contents insurance policy look like?

A home and contents insurance policy combines two types of cover into one package so you're protected financially if your house or belongings are damaged, destroyed or lost.

Building cover protects the physical structure of your home while contents cover protects the things you own inside the home that aren't permanently attached, like furniture, clothes, electronics tools, and personal items. Some policies also offer portable contents cover for belongings you take outside the home, such as laptops, phones and bicycles.

Most policies will outline a list of insured events, such as fire, storm, theft or burst pipes and may offer optional benefits like accidental damage cover or legal liability coverage if someone is injured on your property.

In practical terms, a typical policy will specify:

• Sum insured. This is the amount of cover for both your building and your contents.
• Insured events. What risks are covered (e.g. fire, storm or theft).
• Excess. The amount you contribute towards a claim, which can range from $1,000 to $4,000.
• Optional extras. These are optional things you can have covered on your policy at an extra cost, such as flood cover, portable contents or accidental damage.

Every home and contents insurance policy also comes with a Product Disclosure Statement (PDS). Insurers must have this listed on their site before you purchase a policy.

A PDS outlines exactly what is and isn't covered and contains other important information about your policy. It's important to read this document before taking out a policy, so you're completely across the ins and outs of your policy.

What to consider when purchasing home and contents insurance

Whether you're switching or taking out a policy for your brand new home, there are a few things to keep in mind when shopping around for home and contents insurance. Remember, think beyond price and focus on getting cover that matches your needs. Here are the key areas to compare:

• The level and range of cover

Make sure the policy includes cover for both your home structure and your contents, or choose a bundled home and contents policy if you want both in one. If you're renting, you'll mainly need contents cover, while building cover is essential if you own your home.

• Sum insured and replacement value

Work out how much it would cost to rebuild your home and replace your belongings at today's prices. Underinsuring can leave you out of pocket after a claim. Some policies offer 'new for old' cover, replacing items at today's cost rather than depreciated value.

• Insured events and exclusions

Check exactly which events are covered and what's excluded. Standard events typically include fire, theft and storms, but some risks like flood or accidental damage may be optional extras. Make sure what matters to you is included.

• Excess and premiums

Your excess is what you pay each time you make a claim, while your premium is what you pay on an annual or monthly basis to maintain your premium. Choosing a higher excess can lower your premium, but make sure you can afford it. Compare quotes from multiple insurers to find the best balance.

• Optional benefits

Consider whether you need extras like portable contents cover, accidental damage protection or legal liability cover. Some insurers also provide temporary accommodation cover if your home becomes uninhabitable after an insured event.

• Limits and specified items

Most policies set limits on certain types of items, like jewellery or artwork. If you would like specific coverage for these items, you may be able to list them separately as specified items to be fully covered.

FAQs

• Do I need home and contents insurance?

  Some mortgage lenders will require you to have home insurance when you buy a home to ensure that they get paid, even in the event of a disaster. Outside of this though, there's no legal requirement to have home insurance, it's just wise. It's probably your biggest asset. If you can't afford to lose it, insure it.

• What is the difference between home and contents insurance?

  Home insurance covers the physical structure of your property, including the building itself and permanent fixtures like walls, roofs, floors, built-in cupboards, plumbing, garages and fences. Contents insurance covers the belongings inside your home, such as furniture, appliances, electronics, clothing and personal items. Many insurers offer combined home and contents insurance, which provides cover for both the building and your possessions under one policy.

• What isn't covered under home insurance?

  Home insurance usually doesn't cover damage caused by wear and tear, poor maintenance or gradual deterioration. Many policies also exclude certain natural disasters like flood or storm surge unless you add optional cover. Other common exclusions include damage caused intentionally, pest or vermin damage, pre-existing damage and losses that occur while the home is left unoccupied for extended periods. Always check the policy's Product Disclosure Statement (PDS).

• What is a cooling off period?

  A cooling-off period is a set time after you buy or renew a home insurance policy during which you can cancel it and receive a full refund, as long as you haven't made a claim. In Australia, this period is typically between 14 and 21 days, depending on the insurer. It allows you to review your policy and decide whether the cover suits your needs without penalty.

• How much does home insurance cost?

  Our latest research from November 2024 shows that the average home and contents insurance policy costs around $2,800. Of course, your own quote will differ as it's heavily dependent on the rebuild cost of your home and the value of your contents.

• Do I need home and contents insurance if I rent?

  If you rent, you should consider contents insurance only, you won't need building insurance (that's your landlord's job). Contents insurance can protect your belongings so it's worth considering if you have anything of particular value.

• Do I need home insurance if I live in an apartment?

  You shouldn't need home (building) insurance because your strata fees will cover that but you may like to consider contents insurance to protect your belongings.

• How do I calculate how much home insurance I need?

  For building insurance, you'll need to know a rough estimate of what it'd cost to rebuild your home. This is not the value of your home as that's different and depends on the housing market. This is the cost of materials and labour to rebuild your home. Unfortunately, there's no real way to calculate this with certainty. It could help to look at home building costs for similar properties in your area.

  Additionally, if you're getting contents insurance then you'll need to know the value of the items you're insuring so you can ensure your sum insured is enough.

• Is flooding covered by home insurance?

  It can be. For many policies, it's an optional extra - it's not always included as standard.

To make sure you get accurate and helpful information, this guide has been edited by Angus Kidman as part of our fact-checking process.

Written by

Peta Taylor

Publisher of Insurance

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

Gary Ross Hunter

Journalist

Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

Gary Ross's expertise

Gary Ross has written 570 Finder guides across topics including:

• Health, home, life, car, pet and travel insurance
• Managing the cost of living