The average cost of home insurance in Australia
The typical Australian home is insured for about $2,471 a year — though most pay between $1,695 and $3,744. Here's the full picture: by state, per $100k of cover, and what moves your price — from 51,075 real quotes.
The typical Australian home is insured for
$2,471 / year
Median of 51,075quotes for combined building & contents cover across our panel, refreshed June 2026. Indicative only; individual results vary.
How much is home insurance?
The typical Australian home pays about $2,471 a year (around $206 a month) for combined building and contents cover. Most homes land between $1,695 and $3,744— there isn't one price, because location, sum insured and excess all move it.
Average vs median.You'll see “average cost” quoted everywhere — but the plain average ($3,317) is pulled up by a handful of high-value homes. The median ($2,471) — the middle of every quote — is the typical home, so it's the number we lead with.
Average cost of home insurance by state
The same representative home is quoted very differently around the country. Here's the typical (median) premium, the range most homes pay, and the cost per $100k of cover, state by state.
| State | Typical / yr | Most pay | Per $100k | Quotes | |
|---|---|---|---|---|---|
| Northern Territory | $3,250 | $2,398–$4,263 | $393 | 413 | View → |
| Queensland | $3,237 | $2,384–$4,672 | $572 | 12,868 | View → |
| New South Wales | $2,828 | $2,000–$4,248 | $517 | 13,935 | View → |
| Victoria | $2,100 | $1,534–$3,169 | $363 | 13,011 | View → |
| Tasmania | $2,061 | $1,492–$2,866 | $343 | 2,475 | View → |
| Australian Capital Territory | $1,920 | $1,620–$2,402 | $280 | 714 | View → |
| Western Australia | $1,598 | $1,122–$2,432 | $310 | 4,224 | View → |
| South Australia | $1,496 | $1,199–$1,977 | $276 | 3,435 | View → |
On these numbers, Northern Territory is the dearest state to insure a home ($3,250 typical), and South Australia the cheapest ($1,496).
Median annual premium and the 25th–75th percentile range, from real quotes run across our panel for a representative combined building & contents home in each state, refreshed June 2026. Cost per $100k is the average premium for every $100,000 of cover. Indicative only; individual results vary.
What the average premium actually insures
That typical premium isn't buying a small amount of cover. On average it protects:
That's why the headline price is best read as a rate: roughly $446 per $100k of cover. Insure for too little and you save a little now but risk a shortfall at claim time — see how to set the right figure in our building insurance guide.
The “average” hides a big gap
+105%
is roughly how much more the dearest insurer on our panel quotes than the cheapest — for the very same home. In Western Australia the gap stretches to about 146%.
The single average premium tells you what a typical home pays — not what you would pay, or how far apart insurers sit for your exact home. That gap is the whole reason to compare across a panel rather than renew on autopilot.
What pushes your price off the average
The average is a starting point. A few things decide whether you land above or below it:
Where you live
The biggest lever by far — flood, storm, bushfire and crime risk vary street to street.
Your sum insured
Higher rebuild and contents values cost more to cover. Insure for the right amount, not a round number.
Construction & age
Walls, roof and the era the home was built all move the rebuild cost — and the premium.
Your excess
A higher voluntary excess lowers the premium; just keep it to an amount you could actually pay at claim time.
How to pay below the average
A few deliberate moves keep you under the typical price — the highlights are below, and the full guide to cheaper home insurance goes deeper.
- 1
Compare before you renew
Loyalty rarely pays — the renewal notice is the most expensive way to buy. Compare across a panel each year.
- 2
Lift your excess
A higher voluntary excess cuts the premium; just keep it affordable for a real claim.
- 3
Bundle building & contents
One combined policy is usually cheaper than two, and often earns a multi-policy discount.
- 4
Get the sum insured right
Over-insuring wastes money every year; under-insuring risks a shortfall. Aim for the real rebuild cost.
Average cost FAQs
How much is home insurance in Australia?
The typical (median) home is insured for about $2,471 a year — roughly $206 a month. Most homes fall between $1,695 and $3,744, for combined building & contents cover. Your price depends most on where you live, your sum insured and your excess.
How much is home insurance per month?
For the typical home, around $206 a month (the $2,471 median annual premium, paid monthly). Paying monthly instead of annually can carry a small surcharge with some insurers — check before you choose.
Average or median — which number should I trust?
We lead with the median ($2,471) because it's the typical home. The plain average ($3,317) is pulled up by a handful of high-value homes, so it overstates what most people pay. For “what will it cost me”, the median is the honest answer.
Why is home insurance so expensive — and still rising?
Three things mainly: the rising cost of natural-disaster claims (floods, storms, bushfires), building-cost inflation that lifts rebuild values, and higher reinsurance costs that insurers pass on. Premiums in disaster-exposed areas have risen fastest.
Is home and contents cheaper bundled than bought separately?
Usually, yes. Combining building and contents on one policy is generally cheaper than two standalone policies, and most insurers offer a multi-policy discount. Compare both ways to be sure for your home.
How much should I insure my home for?
Insure the building for its full rebuild cost — not its market value or your mortgage. Underinsuring is a common, costly mistake. See our building insurance guide for how to set the right sum insured.
See your number, not the average
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