home & contents
home insurance is where the biggest leak usually is.
It is the largest premium most households pay, it has risen faster than almost any other cost, and it is the one people are least likely to re-check.
the market moved, but not evenly
Rising reinsurance costs and a run of natural-hazard claims have pushed the whole market up. That part is real and it is not your insurer being greedy. What sits on top of it is the part worth examining: increases applied to existing customers that run ahead of what the same insurer quotes a new one.
Regional exposure dominates everything else. The ACCC puts average home and contents premiums in north Queensland and the Northern Territory above $3,000, and in north Western Australia above $4,395 — roughly double the rest of the country.
three gaps worth checking before you look at price
your sum insured
Should be the cost to rebuild today — including demolition, debris removal and professional fees — not the purchase price or market value. A figure set years ago and merely indexed is often well short of current construction costs.
flood, and what your insurer means by it
Flood, storm surge and actions of the sea are distinct perils with distinct definitions, and they differ between insurers. This is the single most consequential difference between two policies at the same price.
where you live while it’s rebuilt
Temporary accommodation cover is usually capped as a percentage of the sum insured and limited in months. After a widespread event, rebuilds take far longer than those caps assume.
Price is the easy thing to compare and the least important. A policy that is $200 cheaper and excludes the peril your street actually faces is not cheaper. Read the Product Disclosure Statement before switching.
common questions
- How much is home and contents insurance in Australia?
- The average indicative quote across the capital cities was about $2,903 a year as at June 2026, according to Compare the Market. Premiums vary enormously by postcode — flood, bushfire and cyclone exposure move the number far more than anything else.
- Why has my home insurance gone up so much?
- Two things are happening at once. The market genuinely moved — capital-city quotes rose 14.78% over June 2025 to June 2026, and roughly 51% across five years, driven by reinsurance costs and natural-hazard claims. Separately, individual insurers apply increases to existing customers that exceed the market. The second is the part you can do something about.
- Am I underinsured?
- Very possibly. Building sum insured should reflect the cost to rebuild today — including demolition, debris removal, professional fees and current construction costs — not what you paid or what the property would sell for. Construction costs have risen sharply, and a sum insured set a few years ago and merely indexed since is often well short.
- Does home insurance cover flood?
- Not always, and this is the most consequential gap in Australian home insurance. Definitions differ between insurers, and flood, storm surge and actions of the sea are treated as separate perils. Check the specific definitions in the PDS rather than assuming a policy that mentions "flood" covers your situation.