The average cost of home insurance in Australia
What Australians actually pay for home insurance — by state, per $100k of cover, and what moves your price, from real Cover Club quotes.
By Andre Lang · Home insurance savings expertHow much is home insurance?
There isn't a single price — location, sum insured and excess move it widely. Run a quote to see yours across our panel.
What pushes your price off the average
The average is a starting point. A few things decide whether you land above or below it:
Where you live
The biggest lever by far — flood, storm, bushfire and crime risk vary street to street.
Your sum insured
Higher rebuild and contents values cost more to cover. Insure for the right amount, not a round number.
Construction & age
Walls, roof and the era the home was built all move the rebuild cost — and the premium.
Your excess
A higher voluntary excess lowers the premium; just keep it to an amount you could actually pay at claim time.
How to pay below the average
A few deliberate moves keep you under the typical price — the highlights are below, and the full guide to cheaper home insurance goes deeper.
- 1
Compare before you renew
Loyalty rarely pays — the renewal notice is the most expensive way to buy. Compare across a panel each year.
- 2
Lift your excess
A higher voluntary excess cuts the premium; just keep it affordable for a real claim.
- 3
Bundle building & contents
One combined policy is usually cheaper than two, and often earns a multi-policy discount.
- 4
Get the sum insured right
Over-insuring wastes money every year; under-insuring risks a shortfall. Aim for the real rebuild cost.
Average cost FAQs
How much is home insurance in Australia?
It varies widely by location, sum insured and cover. Run a quote to see your price across our panel.
How much is home insurance per month?
Most insurers let you pay monthly; the monthly figure is simply the annual premium split across the year, sometimes with a small surcharge.
Average or median — which number should I trust?
The median — the middle of all quotes — better reflects a typical home than the plain average, which a few very expensive homes can skew upward.
Why is home insurance so expensive — and still rising?
Three things mainly: the rising cost of natural-disaster claims (floods, storms, bushfires), building-cost inflation that lifts rebuild values, and higher reinsurance costs that insurers pass on. Premiums in disaster-exposed areas have risen fastest.
Is home and contents cheaper bundled than bought separately?
Usually, yes. Combining building and contents on one policy is generally cheaper than two standalone policies, and most insurers offer a multi-policy discount. Compare both ways to be sure for your home.
How much should I insure my home for?
Insure the building for its full rebuild cost — not its market value or your mortgage. Underinsuring is a common, costly mistake. See our building insurance guide for how to set the right sum insured.
See your number, not the average
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