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.
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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.
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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
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I want to insure my Furnitue etc in a container at a self storage facility
What’s the best way to go about this?
Hi Kane,
Home and contents insurance can be customized to have contents in commercial storage covered. If you already have one, you can contact your provider to discuss how you can have it added to your existing policy.
If you are still in search of a cover, you can check out options on our Compare Home and Contents Insurance page.
Regards,
James
i want home insurance ‘without’ contents. does anyone know of an insurer.
Hi Tracey,
Thanks for your comment and I hope you are doing well.
Yes, you can find home insurance only for your home through home building insurance. As it says above, this is a stand-alone cover for only your home. It also covers other fixtures on your property, such as garages, fences, and sheds. It protects you against a bunch of natural events, such as fire, storm damage, and floods.
You will find a table that compares the features and benefits of each home insurance provider in terms of what it does and doesn’t cover. This way it will be easier for you to see which provider fits you best. If you need further help, a quick guide on how to compare home insurance is also stated on the page. As a friendly reminder, carefully review the Product Disclosure Statement of the product before applying. You may also contact the insurance provider should you have any questions about their policy.
I hope this helps and feel free to reach out to us again for further assistance.
Best,
Nikki
I been trying to look for a home insurance for me rental property but it was declined due to the following reasons:
1. it is a rental property and we don’t know when we can have a tenant to occupy the property
2. Its still under renovation/construction but water tight now.
can you please help me find a cover for my property?
Hi Andrew,
Thanks for your message and for visiting Finder.
Sorry to hear that you’ve been declined for home insurance. Perhaps you may want to look at landlord insurance. You can compare and choose insurers as well as information on coverage, benefits, and the difference between home insurance and landlord insurance.
However, many insurers won’t cover you if your property will be unoccupied for over 30 days. It will be considered unoccupied and you may void your home insurance. Each provider imposes its own time limit on the maximum period you can leave your home unoccupied and still expect full coverage under your policy. Some insurers have a maximum unoccupied limit of 60 days, others extend this limit out to 90 days, but some companies require notification if you’ll be away for more than 30 days.
Check the product disclosure statement (PDS) for the limit imposed by your insurer. If you exceed this limit, one of two things will happen:
However, it may be possible to contact your insurer and arrange for home insurance cover to remain in place for the entire time your home is unoccupied. For more information, you may view our review on unoccupied home insurance.
Hope this helps! Feel free to message us anytime should you have further questions.
Cheers,
Nikki
If I purchase a property, do I need any form of insurance prior to settlement? Deposit insurance??
thanks
Hi Peter,
Thanks for reaching out.
That would be the Lenders Mortgage Insurance and it will depend on how much deposit you are able to make.
LMI is an upfront charge you will pay if you borrow over 80% of your property’s purchase price or value when buying a home or investment property.
Because LMI allows many borrowers to purchase a home with as little as a 5% deposit, it’s not just a fee but also a tool. You can learn more about Lenders Mortgage Insurance (LMI). Our guide provides information on how it works, ways to avoid LMI, and answers to commonly asked questions.
Cheers,
Joanne
Need insurance that will cover our home year round, we live in the home 6 months a year and overseas 6 months a year, during which time we will Air BNB which we also need to be covered for. Would prefer complete replacement cover. Getting so many varying quotes and getting a bit lost!
Hi ET,
Thank you for your question.
I’m sorry to hear about the difficulty you’re having. While we can’t provide specific recommendations, I advise that you check your options listed on this page.
Aside from that, you may find ShareCover page helpful. They could cover your home. Please get in touch with them so you can get more details.
All the best,
Zubair