If you own a free standing home in Exmouth, WA 6707, you already know that living on the North West Cape comes with a unique set of rewards — and risks. Stunning coastline, world-class diving, and a tight-knit community are all part of the appeal. But when it comes to home insurance, that same remote, cyclone-prone location means premiums that look very different from the rest of the country. In this article, we dig into a real home and contents insurance quote for a 3-bedroom, 2-bathroom property in Exmouth, break down what's driving the cost, and share practical tips to help you get the best value cover.
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Is This Quote Fair?
The quote in question comes in at $8,025 per year (or $762/month) for combined home and contents cover, with a $5,000 excess on both building and contents. The building is insured for $900,000 and contents for $30,000.
Our price rating for this quote is FAIR — Around Average.
That might sound surprising given how far above the state and national averages this figure sits, but "fair" is assessed relative to comparable properties in the same suburb, not against the broader Australian market. When you look at what other Exmouth homeowners are paying, this quote lands comfortably within the normal range — above the suburb median of $6,428/yr but well below the 75th percentile of $8,654/yr. In other words, roughly half of similar Exmouth properties are quoted less, but a meaningful portion are quoted even more.
Given the specific characteristics of this property — fibro asbestos walls, a 1967 build, pole foundations, and its location in a designated cyclone risk zone — a premium in this range is broadly consistent with what insurers price for comparable homes in the area.
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How Exmouth Compares
The numbers tell a clear story about just how much location shapes your insurance costs. Here's how this quote stacks up across different benchmarks:
| Benchmark | Average Premium |
|---|---|
| This Quote | $8,025/yr |
| Exmouth (suburb avg) | $6,847/yr |
| Exmouth (suburb median) | $6,428/yr |
| Ashburton LGA average | $10,503/yr |
| WA state average | $2,144/yr |
| National average | $2,965/yr |
Exmouth premiums are 3.2× the WA state average and nearly 2.7× the national average. That's a dramatic gap, and it's almost entirely attributable to cyclone risk. Exmouth sits in one of Australia's most active tropical cyclone corridors, and insurers price that exposure heavily into every policy written in the postcode.
It's also worth noting that the Ashburton LGA average of $10,503/yr — which covers a broader region including more remote and exposed properties — sits well above this quote, suggesting that for a suburban Exmouth home, $8,025 is not at the extreme end of the local market.
For broader context, you can explore WA home insurance statistics and national home insurance benchmarks to see how different regions compare across Australia.
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Property Features That Affect Your Premium
Several characteristics of this property have a direct bearing on what insurers charge. Understanding them helps you make sense of the quote — and potentially address some of them over time.
Fibro Asbestos Walls
This is one of the most significant rating factors for older Australian homes. Fibro asbestos (fibrous cement sheeting containing asbestos) was widely used in construction through the 1950s, 60s, and into the 70s. Insurers view it as higher risk because repair or replacement requires specialist licensed contractors, dramatically increasing the cost of any claim. Many insurers also apply restrictions or exclusions to properties with asbestos-containing materials, so it's worth reading your PDS carefully.
1967 Construction
At nearly 60 years old, this home predates modern Australian building codes and cyclone construction standards. Older homes are statistically more vulnerable to storm damage and have higher rebuild complexity, both of which push premiums upward.
Pole Foundations
Homes built on poles (stumps) are common in tropical and coastal Queensland and WA, offering ventilation and flood resilience. However, they can be more susceptible to certain wind uplift forces during a cyclone, which insurers factor into their risk models.
Cyclone Risk Zone
Exmouth is squarely in a designated cyclone risk area. This single factor arguably contributes more to the premium than any other. Insurers in northern WA apply significant loadings for tropical cyclone exposure, and the $5,000 excess on this policy is partly a reflection of that — higher excesses help keep the base premium from climbing even further.
Steel/Colorbond Roof
On the positive side, a Colorbond steel roof is generally viewed favourably by insurers. It's durable, fire-resistant, and performs well in high-wind events compared to older roofing materials like terracotta tiles or corrugated iron. This likely provides a modest offsetting benefit to the premium.
Building Sum Insured: $900,000
The sum insured is set at $900,000 for a 139 sqm home, which works out to roughly $6,475/sqm. In a remote location like Exmouth, rebuild costs are genuinely elevated due to freight, labour scarcity, and the need for cyclone-rated construction. This level of cover is not unreasonable, but it's worth reviewing with a quantity surveyor periodically to ensure it reflects current rebuild costs — neither over- nor under-insuring.
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Tips for Homeowners in Exmouth
1. Shop the Market Every Year
With only 5 quotes in our Exmouth suburb sample, the local market is relatively thin — but premium variation between insurers can still be substantial. Don't auto-renew without comparing quotes at CoverClub. A difference of even 10–15% on an $8,000 premium is $800–$1,200 back in your pocket annually.
2. Consider a Cyclone Resilience Assessment
Some insurers offer premium discounts for homes that have been assessed and upgraded to meet current cyclone standards. Retrofitting tie-downs, improving roof-to-wall connections, or upgrading window and door protection can all reduce your risk profile. Contact the WA Department of Fire and Emergency Services for guidance on cyclone-proofing older homes.
3. Review Your Sum Insured Regularly
Building costs in regional WA have risen sharply in recent years. Make sure your $900,000 sum insured keeps pace with actual rebuild costs — including demolition, asbestos removal, and the freight premium for remote construction. Underinsurance is a serious risk; if you're underinsured at claim time, your payout may be reduced proportionally.
4. Understand Your Asbestos Obligations
Before making any modifications or repairs to fibro asbestos walls, familiarise yourself with WA's asbestos regulations. Undisturbed fibro is generally considered manageable, but any disturbance requires licensed contractors. Keeping records of inspections and maintenance can also support your insurance claims process if damage occurs.
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Compare Home Insurance Quotes in Exmouth
Whether this quote reflects your own situation or you're just starting to explore your options, the smartest move is always to compare. Premiums vary significantly between insurers — even for identical properties — and the only way to know if you're getting a competitive rate is to look at the market. Get a home insurance quote through CoverClub and see how your premium stacks up against Exmouth's local suburb benchmarks and the national picture.