How much does home insurance cost in Australia?

Finder research found the average home insurance cost in Australia is $2,044 but it can vary massively from home to home. That’s why it’s so important to compare policies.

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By

Peta Taylor

Edited by

Tim Bennett

Updated

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Key takeaways

  • The average cost of home insurance in 2024 is around $2,000.
  • The cost of home insurance varies hugely from home to home. Your own quote could be quite different.
  • Location and the sum insured are big factors that will determine your premium

The average cost of home insurance in Australia

Our team of home insurance experts gathered a bunch of quotes from over 40 different home insurance providers. We gathered quotes for NSW, VIC, QLD, SA and WA. To show you how hugely costs can vary, we've included the annual quotes from 10 popular providers.

As you can see, the quote differs greatly state to state. This is because location plays a huge part in what your premium will cost.

Keep in mind, these can be used as a guide only. Your own quote will differ based on your location, your home and your own personal history.

ProviderNSWVICQLDSAWA
AAMI$1,225$1,138$1,120$941$1,206
QBE$2,743$1,353$2,354$1,120$1,901
Budget Direct$1,696$1,012$1,186$882$1,431
NRMA$1,939N/A$2,221N/AN/A
Honey Insurance$2,657$1,762$2,190$1,266$1,744
ahm$3,332$2,250$3,009$2,133$2,697
Youi$3,048$1,606$2,584$1,398$1,997
IMB$2,315$2,029$2,118$1,674$2,393
National Seniors$2,619$2,282$2,433$1,689$2,464
Bupa$3,714$2,507$3,333$2,378$2,980

To learn more about how our quotes were collected, you can read our Finder home insurance methodology.

Is the cost of home insurance going up?

Sadly, yes. In 2023, Finder research indicated that the average cost of a home insurance policy was around $1,700. In 2024, our research suggests that the average cost is now around $2,000. That's a 17.65% increase in just one year.

That data lines up with other reporting - the AFR reports the annual price rise of home insurance is currently 16.5%, which is the highest we've seen in 3 decades, other than after the introduction of the GST. Inflation, the cost of reinsurance and the changing climate all have a part to play.

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Our expert says

"Yes, home insurance premiums are going up. It's normal for a policy to increase year on year but homeowners are noticing this price hike is a bit more extreme. Home insurance costs are seeing a steep rise due to things like inflation and global warming. Think about all the natural disasters Australia has been hit with in recent years; floods, bushfires, extreme winds and storms. Every time something like this happens, there's a string of home insurance claims that are made. This all plays a factor in how much home insurance costs in future."

Publisher of Insurance

How to save on your home insurance premiums

The price hike is somewhat inevitable but the good news is, there are still ways to save. Contrary to popular belief, you don't just have to pay whatever amount your insurer quotes you at renewal time.

  1. Shop around. You won't know what's out there if you don't bother to get a few more quotes and check. If you get about 5 different quotes then that'll give you a good idea of what's available.
  2. Get on the phone. Your current insurer will typically be really interested in keeping you as a customer. If you call them and tell them that your quote for renewal is out fo your budget and ask if there's any flexibility on the price, they'll likely lower it for you on the spot. It's a great way to save if you're happy with the service of your current provider, but not the cost.
  3. Look for sign up discounts. Lots of insurers have online sign up and deals and discounts available for new customers, especially if you're buying home and contents insurance (rather than a building only policy). These can be quite generous and save you hundreds.
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"When buying my first home, i knew home insurance was a must, but had no idea how the costs worked. I quickly worked out that my policy premium was really impacted by two major things - the location and the'sum insured'. I used the Insurance Council building calculator to work out exactly how much it would cost to re-build my home. Turns out, i'd over insured in the first year, so reduced my policy by $50,000 coverage which knocked $200 off my annual bill."

Head of publishing

FAQs

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

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

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4 Responses

    Default Gravatar
    NeridaNovember 20, 2024

    If the average price of house insurance is $2000/pa, how can I find out why my house insurance is $4400/pa for a less than average and very basic house.
    Is there a direct comparison e.g. a house worth $500 000 to replace should have a premium of $ per $100 000?

      AvatarFinder
      SarahNovember 21, 2024Finder

      Hi Nerida,

      Every insurer prices insurance differently based on their own risk calculations, the number of claims they’ve paid out and other factors, so the exact same cover can vary widely in price, depending on which insurer you’re with. There’s a good chance you can get a better deal by shopping around. I compare every year – a couple of years ago, I compared and got my home insurance down from $4,300 to $2,900. This year, my premium went up by $2,000 so I shopped around again and got it for around $3k. You can compare some options here, and also contact your insurer to make sure they’re giving you their best possible deal.

      Hope this helps!

    Default Gravatar
    GillApril 20, 2023

    Hi May i have an estimate of a $25,000 contents only insurance plus $15,000 jewellery
    Regards Gill

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