If you own a free standing home in Oak Flats, NSW 2529, you've probably wondered whether your home insurance premium is reasonable — or whether you're quietly paying too much. Oak Flats is a well-established suburb in the Shellharbour local government area, sitting on the shores of Lake Illawarra on the NSW South Coast. It's a popular spot for families, with a mix of older homes and newer builds, and that variety in housing stock can have a significant impact on what insurers charge.
This article breaks down a recent home and contents insurance quote for a four-bedroom, two-bathroom free standing home in Oak Flats, and puts it in context against suburb, state, and national benchmarks.
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Is This Quote Fair?
The quote in question comes in at $4,296 per year (or $412 per month) for combined home and contents cover, with a building sum insured of $705,000 and contents valued at $160,000. Both the building and contents excess are set at $2,000.
Based on our pricing data, this quote is rated Expensive — above average for the area. That's a meaningful flag worth exploring, because Oak Flats is not generally considered a high-risk suburb for insurance purposes. The suburb average annual premium sits at just $1,325, and the median is even lower at $1,279. Even at the 75th percentile — meaning only one in four quotes is more expensive — the figure is $1,666 per year.
At $4,296, this quote is more than three times the suburb median. That's a significant gap, and it's worth understanding why before simply accepting the price.
It's worth noting that the sum insured of $705,000 for the building is on the higher end for this type of property, and the contents cover of $160,000 adds meaningfully to the overall premium. Higher insured values naturally push premiums up — but even accounting for that, the gap relative to suburb norms is substantial enough to warrant shopping around.
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How Oak Flats Compares
To put this quote in proper perspective, here's how Oak Flats insurance premiums stack up against broader benchmarks:
| Benchmark | Average Premium | Median Premium |
|---|---|---|
| Oak Flats (suburb) | $1,325/yr | $1,279/yr |
| Shellharbour LGA | $1,744/yr | — |
| NSW (state) | $9,528/yr | $3,770/yr |
| National | $5,347/yr | $2,764/yr |
A few things stand out here. First, NSW as a state has a very high average premium ($9,528), largely driven by properties in flood-prone, bushfire-exposed, or cyclone-risk areas — which skews the state average significantly upward. The state median of $3,770 is a more realistic benchmark for typical NSW homeowners.
Looking at national figures, the average premium is $5,347 and the median is $2,764. Again, the median is the more useful number for most homeowners, as it isn't distorted by extreme outliers.
Oak Flats actually sits well below both state and national medians, which suggests it's a relatively affordable area to insure — making the $4,296 quote stand out even more. The Shellharbour LGA average of $1,744 reinforces that this suburb generally attracts modest premiums.
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Property Features That Affect Your Premium
Several characteristics of this particular property are likely contributing to the elevated quote. Understanding these factors can help you have a more informed conversation with insurers.
Fibro Asbestos External Walls
This is arguably the most significant risk factor for this property. Homes built with fibro asbestos (fibrous cement sheeting containing asbestos) — common in Australian homes constructed before the mid-1980s — carry higher insurance premiums due to the cost and complexity of repairs. If the walls are damaged, any repair or rebuild work must comply with strict asbestos handling regulations, which dramatically increases labour and disposal costs. This property was built in 1960, squarely within the era when fibro asbestos was widely used.
Age of Construction (1960)
Older homes generally attract higher premiums. Electrical wiring, plumbing, and structural elements may be outdated or more prone to failure, increasing the likelihood of a claim. A home built over 60 years ago is more likely to have ageing infrastructure that modern insurers price cautiously.
Stump Foundation
Homes on stumps (also called pier or post foundations) can be more susceptible to certain types of damage — including subsidence, termite activity, and storm damage — compared to slab foundations. This can be a contributing factor in premium calculations.
Swimming Pool
The presence of a pool adds liability exposure and increases the overall replacement cost of the property, both of which can nudge premiums higher.
Solar Panels
Solar panels add value to the property and represent an additional asset that needs to be covered. Their inclusion in the building sum insured is appropriate, but it does contribute to the overall insured value.
Timber and Laminate Flooring
Timber floors, while aesthetically appealing, can be more expensive to replace than concrete or vinyl alternatives, which may influence the building sum insured and, by extension, the premium.
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Tips for Homeowners in Oak Flats
If you're a homeowner in Oak Flats — particularly in an older fibro home — here are some practical steps to help manage your insurance costs without compromising on cover.
- Shop around and compare multiple quotes. The gap between the cheapest and most expensive quotes in Oak Flats is substantial (from $739 at the 25th percentile to $1,666 at the 75th). Different insurers assess fibro asbestos and older homes very differently, so getting at least three to four quotes is essential.
- Review your sum insured carefully. Make sure your building sum insured reflects the actual cost to rebuild — not the market value of the property. Overinsuring can push premiums up unnecessarily. Consider getting a professional building valuation to ensure accuracy.
- Ask about asbestos-specific policies. Some insurers specialise in or are more comfortable with older fibro homes. A broker with local knowledge can help identify insurers who won't penalise you excessively for the construction type.
- Consider your excess level. The current quote carries a $2,000 excess on both building and contents. Opting for a higher excess (if you can comfortably self-fund smaller claims) is one of the most direct ways to reduce your annual premium.
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Compare Your Options with CoverClub
Whether you're reviewing an existing policy or getting cover for the first time, it pays to compare. CoverClub makes it easy to see how your quote stacks up against real data from your suburb, your state, and across Australia. Get a home insurance quote today and find out if you're paying a fair price — or if there's a better deal waiting for you.