Building insurance in Australia
Building insurance rebuilds your home if it's damaged or destroyed. Here's what it covers, what moves the price, how much to insure for, and how to compare a quote — from real Cover Club data.
By Andre Lang · Home insurance savings expertBuilding insurance, by the numbers
How we get these numbers: sums insured and rates drawn from real quotes run across our panel of insurers for representative homes. The per-$100k rate is the cheapest band in our data; building-only premiums are usually a little lower than combined home cover. Indicative only.
What is building insurance?
Building insurance — also called home or house insurance — covers the physical structure of your home against insured events like fire, storm, flood and impact. If the worst happens, it pays to repair or fully rebuild, less your excess.
It covers more than just the house itself:
Building vs contents vs combined
Building covers the structure; contents covers your belongings inside; combined home & contents bundles both. Owner-occupiers usually combine; landlords and some unit owners take building-only.
What makes a home cost more to rebuild
Your sum insured — the rebuild cost — is the biggest building-specific lever, and it's driven by the structure itself: what the walls and roof are made of, and the era the home was built in. Location risk and your excess then move the price from there.
How much building insurance do you need?
Insure your building for its full rebuild cost— not its market value, and not your mortgage. The two are very different: market value includes the land (which doesn't need rebuilding), while rebuild cost includes things buyers never think about.
A proper rebuild figure includes:
Underinsuring the building is one of the most common and costly mistakes Australians make — a shortfall only shows up at claim time, when it's too late. Use a sum-insured calculator, and review the figure at every renewal as building costs rise.
How to compare a building insurance quote
- 1
Enter your address
We pre-fill what we can about the property, so there's less for you to type.
- 2
Confirm a few details
Construction, rough rebuild value and the cover you want — building only, or building plus contents.
- 3
Compare across our panel
See competitive prices from a panel of insurers side by side, in minutes.
- 4
Choose and you’re covered
Pick the policy that fits; our brokers are here if you want a hand.
Building insurance FAQs
Is building insurance compulsory in Australia?
No, it isn't required by law. But if you have a mortgage, your lender will almost always require building insurance as a condition of the loan — and few owners could afford to rebuild a home out of pocket, so most insure regardless.
What's the difference between building and contents insurance?
Building (home) insurance covers the physical structure — walls, roof, floors, fixed fittings like kitchens and bathrooms, plus features such as garages, sheds, fencing and in-ground pools. Contents insurance covers your belongings inside. Owner-occupiers usually combine both; landlords and some unit owners take building-only.
How much building insurance cover do I need?
Insure for the full rebuild cost — not the market value or your mortgage. Rebuild cost includes demolition, debris removal, council and permit fees, and professional costs, on top of construction. Underinsuring the building is one of the most common and costly mistakes; review the figure at every renewal as building costs change.
Can I get building-only insurance without contents?
Yes. Building-only cover suits landlords (whose tenants insure their own contents), some unit owners, and anyone whose belongings are covered separately. You can add contents later if your situation changes.
Does building insurance cover floods, storms and fire?
Fire (including bushfire) and storm are standard insured events on virtually every building policy, and flood is now included as standard on most. What varies is how each is defined and how steeply it's priced for higher-risk addresses — always check the PDS.
How long does a building insurance quote take?
Minutes. Enter your address, confirm a few property details (we pre-fill what we can), and compare prices across our panel of insurers online — no call required.
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