Raymond Terrace is a well-established riverside town in the Port Stephens area of New South Wales, sitting roughly 25 kilometres north of Newcastle. It's a popular choice for families and downsizers alike, and the local property market includes a solid mix of freestanding homes, units, and townhouses. In this article, we take a close look at a real building insurance quote for a 2-bedroom, 1-bathroom brick veneer townhouse in the suburb — and assess whether the premium stacks up against what other homeowners in the area and across Australia are paying.
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Is This Quote Fair?
The quote in question comes in at $2,014 per year (or $193 per month) for building-only cover, with a $2,000 building excess and a sum insured of $432,000. Based on CoverClub's pricing data, this quote is rated CHEAP — below average for the area.
That's genuinely good news for this homeowner. Being below average doesn't just mean saving a few dollars — it means this policy is priced more competitively than the majority of comparable quotes we've seen for Raymond Terrace. For a townhouse that falls under a body corporate or strata arrangement, building-only cover is typically the appropriate structure, since the body corporate generally handles the shared structure insurance. Having a separate policy for the individual lot — or topping up where the strata cover falls short — is a smart move, and doing so at a below-average price is even better.
At $2,014 per year, this premium sits below the suburb's 25th percentile of $2,227, meaning it's cheaper than at least three-quarters of quotes collected in the 2324 postcode. That's a strong result by any measure.
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How Raymond Terrace Compares
The pricing data for Raymond Terrace reveals some notable variation, which is worth understanding before drawing conclusions. According to CoverClub's suburb statistics for Raymond Terrace (NSW 2324), based on a sample of 43 quotes:
| Benchmark | Premium |
|---|---|
| Suburb 25th percentile | $2,227/yr |
| Suburb median | $3,444/yr |
| Suburb 75th percentile | $4,613/yr |
| Suburb average | $31,460/yr |
The suburb average of $31,460 is dramatically higher than the median of $3,444 — a gap that almost certainly reflects a small number of very high-value or high-risk properties skewing the mean upward. The median is generally a more reliable benchmark for typical homeowners, and against that figure, this quote of $2,014 looks very competitive indeed.
Zooming out to the state level, NSW home insurance data shows a state median of $3,770 per year and a state average of $9,528 per year. The Maitland LGA — which encompasses Raymond Terrace — has an average of $13,875 per year, again likely influenced by high-value outliers.
At the national level, the median sits at $2,764 per year and the average at $5,347 per year. This quote of $2,014 sits below both the national median and the NSW median, which is a solid outcome for a property of this type and size.
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Property Features That Affect Your Premium
Several characteristics of this townhouse are likely contributing to its competitive pricing:
Brick veneer construction and tiled roof — This combination is generally well-regarded by insurers. Brick veneer walls offer good structural integrity and fire resistance, while concrete or terracotta tiles are considered a durable, low-risk roofing material. Together, they typically attract more favourable premiums compared to properties with timber cladding or metal roofing.
Slab foundation — A concrete slab is a common and stable foundation type in NSW. It doesn't carry the same subsidence or moisture risks associated with older pier-and-beam or strip footing foundations, which can reassure underwriters.
Construction year: 1992 — At around 33 years old, this property is neither brand new nor ageing to the point of concern. Buildings from the early 1990s generally meet reasonable construction standards and are old enough to have a proven track record without the elevated maintenance risks of much older stock.
105 sqm building size — A modest footprint keeps the replacement cost calculation more manageable. With a sum insured of $432,000, this reflects a rebuild cost of roughly $4,100 per square metre — a reasonable figure for above-average fittings in today's construction environment.
Above-average fittings — The quality of internal fittings is factored into the sum insured rather than directly into the premium, but it's important that the insured amount accurately reflects the cost to rebuild with equivalent quality. Underinsurance is a common trap for homeowners with upgraded kitchens, bathrooms, or flooring.
Ducted climate control — This is worth noting as a feature that adds to the replacement value of the property. Ducted systems are expensive to replace and should be accounted for in the sum insured figure.
No pool, no solar panels — Both of these features can add complexity (and cost) to a policy. Their absence here keeps things straightforward.
Not in a cyclone risk area — Raymond Terrace sits well outside the cyclone-prone zones of northern Queensland and WA, which removes a significant risk loading that affects many Australian properties.
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Tips for Homeowners in Raymond Terrace
1. Review your strata cover carefully As a body corporate property, your strata manager should provide a certificate of currency each year outlining what the shared building policy covers. Check whether your individual lot — including internal fixtures, fittings, and improvements — is fully covered, or whether you need a top-up policy. Don't assume the strata policy has you fully protected.
2. Don't set and forget your sum insured Construction costs have risen sharply in recent years. A sum insured that was adequate three years ago may no longer reflect the true cost of rebuilding today. Review your $432,000 figure annually and consider using a building calculator or speaking with a quantity surveyor if you're unsure.
3. Compare quotes before renewal Even if your current premium is below average — as this one is — it's worth shopping around at renewal time. Insurers regularly adjust their pricing, and a policy that's competitively priced one year may not be the best value the next. Get a fresh quote at CoverClub to see how your renewal stacks up.
4. Understand your excess before you claim This policy carries a $2,000 building excess, which is on the higher end. A higher excess typically reduces your premium, but it also means you'll need to cover more out of pocket in the event of a claim. Make sure you have that amount accessible, and consider whether a lower excess option might be worth the additional premium cost for your situation.
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Compare Your Home Insurance Today
Whether you're renewing an existing policy or insuring a new property, it pays to compare. CoverClub makes it easy to see what home insurance actually costs for properties like yours in Raymond Terrace and across Australia — with real data, not estimates. Start your quote at CoverClub and find out if you're getting a fair deal.