Are you new to home insurance?
Never looked into home insurance before? No worries! We've got a guide for first time homeowners to help you understand home insurance and choose the right policy for you.
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
Did you know?
Switching is easy. In a Finder survey of almost 13,000 Australians, over 1,100 had switched their home and contents insurance in the last 6 months.
What is home insurance and how does it work?
Home insurance is an agreement between you and your home insurer. You pay a fee and in return, the insurer financially protects you from unexpected things that can happen around the home.
When applying, you'll have to answer a bunch of questions about your home and living situation. This is so that the insurer can assess your risk and give you a quote based on your needs.
So what happens then?
Something bad happens, like a tree falling on your roof or a storm
You contact your home insurer and make a claim
Your claim is approved or denied (depending on the situation)
What do I need to know before getting started?
Comparing home insurance online is quick and easy but there are some key terms you'll need to understand before getting started:
Premium. A premium is the price the insurance company will charge you for cover. Most companies will let you choose if you want to pay on a fortnightly, monthly or annual basis.
Excess. This is the amount of money you have to pay before your insurance company will pay out any claim. So if you have a $500 excess and a storm blows a hole in your roof which costs $3,000 to repair, the insurer will pay out $2,500.
Product disclosure statement. This is the legal document that outlines the ins and outs of your policy. It's also known as a PDS.
Insured events. Most insurers have a list of common events that you'll be covered for with home insurance. This includes things like fire, malicious damage, water damage and theft.
Nominated sum insured. This is the amount you insure your house or contents for. It's super important that this figure is accurate. If the sum insured is too low, it could leave you out of pocket if you ever have to repair or rebuild.
Sum insured safeguard. This is an optional benefit offered by some insurance companies which kicks in if your home needs to be repaired or rebuilt, but your sum insured isn't enough to cover it.
What types of home insurance are there?
If you rent out your property, you can see our guide to landlord insurance.
If you own a commercial building, you can see our guide to strata insurance.
Did you know?
In insurance-speak, home insurance refers to the actual structure of your home, as well as more permanent features. It's sometimes referred to as buildings insurance. If you want the items inside your home covered, you'll have to get home and contents insurance.
Which type of home insurance is right for me?
There's an easy way to figure out which type of home insurance might be best for you:
| Who it suits | Who it doesn't suit | |
|---|---|---|
| Home and contents | ✅ People who own the home they live in ✅ Anyone who wouldn't be able to afford major building repairs to their home ✅ Anyone who wouldn't be able to replace their belongings easily or affordably ✅ Anyone who lives in an area prone to natural disasters | ❌ Renters ❌ Apartment owners who already have strata insurance to cover their building ❌ People who don't have many belongings, or not very expensive belongings |
| Home / buildings | ✅ People who own their home but don't have many belongings or very expensive belongings ✅ Anyone who wouldn't be able to afford major building repairs to their home ✅ Anyone who lives in an area prone to natural disasters | ❌ Renters ❌ Apartment owners who already have strata insurance to cover their building |
| Contents | ✅ Renters ✅ Apartment owners who already have strata insurance to cover their building ✅ Anyone who wouldn't be able to replace their belongings easily or affordably | ❌ People who own the home they live in ❌ People who don't have many belongings or many expensive belongings |
If you're trying to find the best home insurance policy, check out our guide. We've researched some Top Picks and can help you figure out how to find the best policy for you.
Here's a home insurance comparison
Compare the benefits of different policy types.
Home and contents insurance policies vary between different insurers, so they have slightly different benefits. However, here is a generalisation of what's usually covered and not covered with home insurance.
| Is this covered? | Home & contents insurance | Building insurance | Contents insurance |
|---|---|---|---|
| Storm and rainwater damage | |||
| Escape of liquid, such as a burst pipe | |||
| Fire damage | |||
| Theft and attempted theft | |||
| Malicious damage and vandalism | |||
| Breakage of glass, ceramics and sanitary fixtures | |||
| Explosions | |||
| Impact damage, such as a fallen tree | |||
| Lightning strikes | |||
| Temporary accommodation | |||
| Flood | |||
| Earthquake or tsunami | |||
| Accidental damage | |||
| Portable contents | |||
| Motor burnout | |||
| Deliberate or negligent damage | |||
| General wear and tear | |||
| Asbestos | |||
| Mould, termites or vermin | |||
| Damage from renovations | |||
| If your home is unoccupied |
Do I really need home insurance?
In most cases, yes.
Of course, we can't force you to do anything, but buying a house is usually one of the biggest financial decisions of your life so it makes sense to protect it. Also, if you've planned to take out a mortgage, most lenders won't approve your application without adequate home insurance.
If you're still unsure, ask yourself the following questions. If you answer YES to any of them, you should really consider home insurance.
Would I be stuck finding somewhere else to live if my home was suddenly uninhabitable?
Would I struggle to pay for major home repairs?
Do I keep anything valuable in my home that would be hard or expensive to replace?
Do I live in an area which is prone to natural disasters?
Do I live in a high-crime area, where burglary or vandalism might occur?
Check out our average home insurance quotes
The cost of home insurance varies massively depending on the value of your home and its location, among other factors.
However, Finder research found that the average cost of a home and contents insurance policy is $136 a month, based on a suburban home worth $500,000 and contents of $100,000.
The Emergency Services Levy Insurance Monitor, a government initiative which tracked the cost of home insurance across NSW, returned a slightly lower average premium of $102 a month.
Check out average cost by state
Compare policies and get a quote
What affects the cost of home insurance?
You could pay less if you….
- Live in a neighbourhood with a low crime rate
- Have extra home security features that could prevent burglary
- Have a fairly modest home with inexpensive rebuild costs
- Choose a higher excess amount
- Don't have recent claims history
You might have to pay more if…
- The location of your home is prone to natural disasters like bushfires or flooding
- Your home is also used as a place of business
- You have added home features like a pool or tennis court
- You want the most comprehensive policy with optional inclusions
How do I compare home insurance?
Home insurance is a big purchase, so we understand you want to get it right. Here's how to make sure you're getting a good deal:
Know the specs of your home
You'll need to know the details of your home, like when it was built and what materials it's made from.
Value your belongings
This can be tough. We recommend going room to room and slowly building up a valuation or bring in a professional to do it.
Compare online and request quotes
You can use our comparison table to compare benefits from Finder partners side by side. The only way to find out exactly how much home insurance will cost is by requesting a personalised quote.
We recommend requesting a few and comparing.
Check the PDS
Check the PDSBefore you buy home insurance, always check the product disclosure statement. It'll tell you everything that is, and isn't, covered by your policy.
Check for offers
Check for offers Some insurers have sign-up deals for new customers which could save you as much as 30% – always check before purchasing.
Is home insurance really worth it?
For a lot of people, yes. Finder research shows that the average cost of home insurance is $1,344 a year, based on a suburban home worth $500,000 and contents of $100,000.
That means, for $1,344 you'd be receiving $600,000 worth of protection. Imagine a strong storm or a fallen tree destroys your roof. The average cost to install a new roof for a moderate-sized home is around $7,500.
Plus, even relatively minor damage can easily cost more than $1,344. If a waste pipe burst in your home, not only would you be hit with plumbing costs, you'd also have to look into replacing furniture or belongings.
What brands offer home insurance?
Anyone looking for home insurance has heaps of options to choose from. We've listed just some of Australia's major providers below.
If the brand you're looking for isn't here, check out our directory.
How else can home insurance help?
Did you know that home insurance can also cover temporary housing for your pets if your home became uninhabitable? It can also cover your holiday home if you're not always there. Here are some other things that home insurance can cover you for.
Back to top
How can I save money on home insurance?
Home insurance can be a major expense for lots of Aussies but there are ways to make your premiums more affordable.
🛍 Shop around
Finder cost research shows you can halve the cost of your insurance premiums, just by comparing online. Why wouldn't you?
🏷 Look for deals
Lots of insurers offer sign-up deals which can reduce your premium by up to 30%. Always check for offers before finalising.
💵 Take a higher excess
Opting for a higher excess will reduce the cost of your premium. Just be sure the excess will be affordable in the event of a claim.
🗒 Review regularly
There's nothing wrong with switching insurers on a regular basis. It's the best way to make sure you're getting a good deal.
What are your current home insurance offers?
There are heaps of home insurance deals which can save you up to 30% on your premium. That means if you have an annual premium of $1,200, you could save $360.
Deal
30% online discount on new home & contents insurance
Receive 30% off your first year's premium when you purchase a new combined Home & Contents Insurance policy online. T&Cs apply.
Deal
Buy online and save up to 30% on a home & contents policy with Australian Seniors.
Offer applies to new policies bought online. Discount is made up of a 10% online discount for the first year, 10% for buying a combined policy and a further 10% if you hold a Seniors Card or 5% for non-card holders over the age of 50. T&Cs apply.
Deal
Earn up to 20,000 Qantas Points with Qantas home insurance
Plus save 15% on your premium when you combine your home and contents insurance. Points awarded will be based on your premium. Not available on homes or for contents we already insure for you. T&Cs & exclusions apply.
Deal
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%.
Deal
Get up to 25% off when you sign up for a new home and contents policy
Save up to 25% when you combine Home and Contents Insurance online.
Deal
Get up to 20% off your first years’ premium with QBE Building and Contents Insurance
Discount is made up of a 10% online discount, and a further 10% for buying a combined policy. T/Cs apply.
Deal
Save up to 20% on a new combined home and contents insurance policy
Discount is made up from a 10% new policy discount (only for the first year), and a further 10% when you opt for a combined policy.
Why use Finder to compare home insurance?
It's free of charge
You'll never be charged for clicking through to one of our partners. We get paid out of their pocket, not yours.
We've made it easy
Our experts have done heaps of research so you can compare policies side by side.
You could save money
Our cost research shows you can easily cut your home insurance premium in half – just by comparing online.
Start comparing home insurance
Frequently asked questions
Frequently asked questions
Stay up-to-date with current news on home insurance
Victoria floods: How much food spoilage will your home insurance cover?
There’s been over 25,000 power outages across Victoria. Home insurance can reimburse you for the food that’s gone to waste. Find out who here.
Read more…
Why are more Aussies switching insurance since COVID-19?
Since COVID-19, millions of Aussies have switched home and car insurance providers – learn why and you could save up to $2,643.
Read more…
Mouse plague not covered by home insurance, with one or two exceptions
We found 3 policies that will cover you if mice cause fire or water damage.
Read more…Icons made by Vectors Market, Freepik from www.flaticon.com