Bombo is a quiet coastal locality tucked along the Illawarra escarpment in the Kiama local government area of New South Wales. With its proximity to the ocean, heritage character, and relaxed lifestyle, it's a sought-after pocket of the NSW South Coast — and like any desirable address, insuring a home here comes with its own set of considerations. This article breaks down a real building insurance quote for a four-bedroom, two-bathroom free standing home in Bombo (postcode 2533), examining whether the premium represents good value and what factors are driving the cost.
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Is This Quote Fair?
The quote in question comes in at $2,579 per year (or $247 per month) for building-only cover on a 214 sqm brick veneer home with a sum insured of $668,000 and a building excess of $5,000.
Our price rating for this quote is CHEAP — below average — and the data backs that up convincingly.
When you look at the suburb-level data for Bombo (2533), the average premium sits at $4,448 per year, with a median of $3,904. This quote lands well below even the 25th percentile of $3,554 — meaning it's cheaper than at least 75% of comparable quotes in the area. That's a meaningful saving of roughly $1,325 per year compared to what the typical Bombo homeowner might pay.
So yes — by any reasonable measure, this is a strong result. Whether it's due to the insurer's risk model, the specific property characteristics, or the level of excess selected, the policyholder is getting building cover at a notably competitive rate.
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How Bombo Compares
Understanding where Bombo sits in the broader insurance landscape helps put this quote in context.
| Benchmark | Premium |
|---|---|
| This quote | $2,579/yr |
| Bombo suburb average | $4,448/yr |
| Bombo suburb median | $3,904/yr |
| Kiama LGA average | $3,332/yr |
| NSW average | $9,528/yr |
| NSW median | $3,770/yr |
| National average | $5,347/yr |
| National median | $2,764/yr |
A few things stand out here. The NSW state average of $9,528 is dramatically higher than the national average, which reflects the concentration of high-risk properties across the state — particularly in flood-prone and bushfire-affected regions. The NSW median of $3,770 tells a more balanced story, suggesting that while some NSW properties attract very high premiums, many sit in a more moderate range.
At the national level, the median of $2,764 is actually close to this quote — which is a useful reminder that $2,579 isn't just cheap for Bombo, it's competitive by Australian standards broadly.
The Kiama LGA average of $3,332 is also worth noting. Bombo's suburb average ($4,448) sits above the LGA average, which may reflect the coastal exposure and slightly older housing stock in parts of the area. This quote, however, beats both figures comfortably.
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Property Features That Affect Your Premium
Every home insurance quote is shaped by the specific characteristics of the property. Here's how the features of this Bombo home are likely influencing the premium:
Brick Veneer Walls Brick veneer is generally viewed favourably by insurers. While it's not as robust as full-brick construction, it offers reasonable fire resistance and durability. It tends to attract lower premiums than timber-framed or fibre cement homes.
Steel / Colorbond Roof Colorbond steel roofing is one of the more insurer-friendly roof types in Australia. It's durable, resistant to ember attack, and performs well in high-wind events. This is likely contributing positively to the premium outcome.
Slab Foundation A concrete slab foundation is considered low-risk by most insurers. It avoids the complications associated with stumped or suspended floors, which can be more vulnerable to moisture, movement, and pest damage.
Timber / Laminate Flooring Timber and laminate floors can be a modest cost driver at claim time — they're more expensive to replace than carpet — but this is generally a minor factor in premium calculations.
Construction Year: 1969 Homes built in the late 1960s are now over 55 years old. Older properties can attract higher premiums due to the increased likelihood of wear-related claims — particularly around plumbing, electrical systems, and roofing. However, a Colorbond roof replacement and solid brick veneer construction can offset some of these concerns.
Solar Panels The property has solar panels, which are typically covered under building insurance as a fixed installation. Insurers factor in the replacement cost of panels, which can add modestly to the sum insured and premium. It's worth confirming with your insurer that solar panels are explicitly included in your policy wording.
Ducted Climate Control Ducted air conditioning systems are fixed building assets and are generally included in building cover. Like solar, they contribute to the overall replacement cost of the home and are reflected in the sum insured.
Slight Elevation (Less Than 1m) The property is noted as slightly elevated — less than one metre. This minor elevation can offer marginal protection against surface water ingress, though it's unlikely to significantly influence the premium at this level.
No Pool, Not in a Cyclone Risk Zone The absence of a swimming pool removes a common liability and maintenance risk factor. Being outside a cyclone risk area is also a premium-positive characteristic — cyclone-rated construction requirements and associated risks can push premiums up significantly in northern parts of Australia.
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Tips for Homeowners in Bombo
1. Review your sum insured regularly Construction costs have risen sharply across Australia in recent years. A sum insured of $668,000 for a 214 sqm home works out to approximately $3,121 per square metre — which is within a reasonable range for a standard-quality build, but worth reassessing annually. Underinsurance is one of the most common and costly mistakes homeowners make.
2. Confirm solar panels and ducted systems are explicitly covered Not all policies automatically extend to solar panel systems or ducted air conditioning without specific mention. Check your Product Disclosure Statement (PDS) to confirm these are included — and that the replacement value is factored into your sum insured.
3. Consider the trade-off on your excess This policy carries a $5,000 building excess, which is on the higher end. A higher excess typically reduces your annual premium, but it means you'll need to cover more out of pocket in the event of a claim. Make sure this aligns with your financial comfort level — particularly for an older home where unexpected repairs may be more likely.
4. Compare quotes at renewal Even if you're happy with your current premium, the insurance market shifts constantly. Insurers reprice risk regularly, and a quote that's competitive today may not be next year. Use platforms like CoverClub to benchmark your renewal offer against the market before you commit.
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Ready to Find a Better Deal?
Whether you're a Bombo local or considering a property in the area, it pays to know what the market looks like before you sign anything. CoverClub makes it easy to compare home insurance quotes and understand how your premium stacks up against real data from your suburb, LGA, and state.