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Is your home insurer ripping you off?

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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
Bradbury$788$1,074$1,516
Byron Bay$884$1,472$2,091
Canowindra$841$1,339$2,030
Concord$844$1,072$1,404
East Gosford$1,013$1,360$1,933
Hinton$1,040$2,736$6,758
Hornsby$689$1,019$1,558
Medlow Bath$1,014$1,364$2,400
Randwick$943$1,180$1,540
Riverview$813$1,186$1,711
Wollongong$901$1,205$1,494

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
BonusFinder Award Finalist
Budget Direct Home & Contents Insurance
Optional
Annually
Our verdict: The most popular insurer on Finder, Budget Direct prioritises low-cost cover and gives you up to 30% off your first year for new combined policies purchased online. This is a big reason it won this year’s Finder Award for value.
Best Rated Brand
Youi Building and Contents Insurance
Annually
Our verdict: Finder’s 2022 Insurer of the Year for Customer Satisfaction and our Top Pick for Fire Damage cover. It’s good if you want a tailored quote over the phone.
Green CompanyBonus
QBE Home & Contents Insurance
Annually
Our verdict: Finder's Top Pick for Floods plus cover for other common claims such as fire and theft). Its discount is better than most – 20% off your first year with a combined policy.
Finder AwardBonus
Honey Home & Contents Insurance
Monthly or Annually
Our verdict: Honey gives you $250 smart sensors to reduce accidents and estimates your rebuild costs for you. Honey was a finalist for the comprehensive category in this year’s Finder Awards.
Finder AwardBonus
Australia Post Home & Contents Insurance
Annually
Our verdict: Covers common claims such as fire, storms, floods and rain. It’s also very helpful if you need to rebuild following a disaster. It offers a special safeguard of up to 30%.
Bonus
Kogan Home & Contents Insurance
Annually
Our verdict: Good comprehensive cover (issued by QBE). Also, get 16% off on your first year's premium when you purchase a new combined Home & Contents insurance policy online + $10 monthly credit. T&Cs apply.
BonusFinder Award Finalist
Qantas Home and Contents Insurance
Optional
Annually
Our verdict: Earn up to 30,000 Qantas Points with every Qantas Home Insurance policy you take out by 28 May. T&Cs and exclusions apply.
Westpac Home and Contents Insurance
Monthly or Annually
Our verdict: Provided by Allianz, one of the biggest insurers in Australia. Cover for fire, theft, storm, cyclones and more.
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