How much does home insurance cost in Australia?

No, it isn't required by law. But if you have a mortgage, your lender will almost always require building insurance as a condition of the loan. Even without a loan, most homeowners insure because rebuilding or replacing belongings is rarely affordable out of pocket.

Home (building) insurance covers the physical structure — walls, roof, fixed fittings and features like garages and fences. Contents insurance covers your belongings — furniture, appliances, electronics and personal items. Owner-occupiers usually combine both; renters typically need contents only.

These days most home policies include flood cover as standard — it's now rare to be able to opt out of it. What still varies a lot is how each insurer defines flood (versus storm, rainwater and actions of the sea) and how steeply it's priced for higher-risk addresses. Always check the PDS for how flood is defined and limited at your property.

Insure your building for its full rebuild cost — including demolition, debris removal, council fees and professional costs — not its market value. For contents, tally the replacement cost room by room. Review the figure each year as building costs change.

Insurers weigh risk differently — especially location-based risks like flood, bushfire and cyclone. That's why the same property can be quoted thousands of dollars apart for similar cover, and why comparing across insurers matters.

At least once a year, ideally at renewal. Rebuild costs, contents and your circumstances change, and letting a premium roll over automatically can mean overpaying or being underinsured.

Yes. You can change insurers at renewal, or mid-term — most insurers refund the unused portion of an annual premium, though some charge a small cancellation fee. Make sure the new cover starts before the old one ends so you're never uninsured.

The excess is the amount you contribute towards a claim before your insurer pays the rest. Choosing a higher excess usually lowers your premium, but means more out of pocket if you claim. Some events carry a special, higher excess.

Only if you have contents cover. Building insurance covers the structure; contents insurance covers your belongings. A combined home & contents policy covers both — most owner-occupiers choose this.

Your landlord insures the building, but not your belongings. If you'd struggle to replace your furniture, electronics and clothes after a fire or burglary, contents insurance is worth considering.

Most home insurance policies come with a cooling-off period (commonly around 14–21 days) during which you can cancel for a full refund, provided you haven't made a claim. Check the PDS for the exact terms.

Fire (including bushfire), storm and — these days — flood are all among the insured events typically included as standard on a home policy; it's now rare to be able to opt out of flood. What varies is how each is defined (flood versus storm and rainwater) and how it's priced for higher-risk addresses. After a declared natural disaster, some insurers apply a moratorium on cancellations. Always confirm how bushfire, storm and flood are each treated in the PDS for your address.

Usually you only need contents insurance. The building and common property are typically insured by the strata scheme (body corporate) under a strata insurance policy you pay for via levies. Check what the strata policy covers — it generally won't cover your belongings, internal fixtures you've added, or your liability inside the unit.

Common exclusions include gradual wear and tear, rust and corrosion, lack of maintenance, termite and pest damage, faulty workmanship or structural defects, deliberate or illegal acts, and damage while the home is unoccupied long-term. Flood may be excluded unless added. Exclusions and waiting periods vary by insurer — the PDS is the source of truth.

Only if you add portable contents (sometimes called personal effects) cover. Standard contents insurance covers items inside the home; portable contents extends cover to things you take outside — phones, laptops, jewellery, cameras and the like — often up to a specified limit per item.

New-for-old replaces an insured item with a brand-new equivalent, with no deduction for age or wear — the most common basis for contents today. Indemnity (or market-value) cover pays the depreciated value, so you receive less for older items. Check which basis your policy uses, as it materially affects what you'd be paid at claim time.

If you own and let a property, standard home insurance may not cover landlord-specific risks. Landlord insurance adds cover for things like loss of rent, tenant-caused damage and liability as a property owner, on top of building cover. Short-stay letting (such as Airbnb) can need specialist cover again — tell your insurer how the property is used.

Premiums are repriced each year on the latest view of risk and costs — more frequent extreme weather, higher reinsurance and rebuild costs, and increasingly precise pricing of your address's flood, fire and cyclone exposure. A renewal can rise 10–20% with no change to your home, which is exactly why comparing at renewal pays off.