Buying home and contents insurance sounds simple until you actually start comparing policies.
One insurer might advertise a surprisingly cheap annual premium, while another costs hundreds more. Then you notice the cheaper policy has a higher excess, lower contents limits, or different conditions for storm, flood, accidental damage or temporary accommodation.
That is why the cheapest quote isn’t automatically the best deal.
In Australia, home insurance prices have been under considerable pressure. CHOICE’s July 2026 analysis found large differences between premiums depending on location and customer circumstances, while recent data also shows how much prices can vary between insurers.
The good news is that you don’t necessarily need to pay the highest price to get solid protection. The trick is comparing policies on the same basis.
Here’s how I’d approach it.
What Does Home and Contents Insurance Actually Cover?
Home and contents insurance generally combines two different types of protection.
Home or building insurance covers the physical structure of your property. Depending on the policy, this can include things such as:
- Walls and ceilings
- Roof
- Floors
- Permanent fixtures
- Kitchens and bathrooms
- Garages and other structures
- Damage from specified insured events
Contents insurance protects belongings inside your home.
That can include:
- Furniture
- Televisions and electronics
- Clothing
- Appliances
- Jewellery
- Computers
- Sporting equipment
- Other personal belongings
Some policies also provide cover for things such as temporary accommodation, legal liability and removal of debris following an insured event.
The exact protection varies significantly between policies, so the Product Disclosure Statement (PDS) is worth checking before buying.
MoneySmart recommends comparing the premium, excess, cover limits, value of belongings and claim settlement options rather than looking at price alone.
How Much Is Home and Contents Insurance in Australia?
There isn’t one national price that everyone pays.
Your premium can change based on:
- State and postcode
- Property location
- Construction materials
- Building replacement value
- Contents value
- Previous claims
- Security features
- Chosen excess
- Optional cover
- Natural disaster risks
- Whether you choose market value or another settlement method
The difference between locations can be substantial.
For example, CHOICE’s April 2026 market analysis reported an average home and contents premium of $4,815 in NSW and $2,973 in the ACT. Those figures are averages from representative quotes, not prices every household should expect to pay.
More recent July 2026 data also showed significant differences between the cheapest and most expensive average policies within individual states.
This is why getting an actual quote for your property is much more useful than relying on a national “average”.
Best Home Insurance Deals by State
There isn’t a single insurer that is cheapest for every Australian household.
CHOICE’s 2026 comparison found different insurers leading on price in different states. Its May 2026 analysis highlighted Westpac Home and Allianz among the lower-priced options in NSW, while Suncorp Classic, GIO Classic, AAMI and Apia appeared among the lower-priced options in Western Australia. Victoria also showed competitive pricing from Westpac Home, QBE, Aldi Household and Allianz.
That doesn’t mean you should automatically buy one of these policies.
A quote can change dramatically depending on your address, property characteristics, excess and sum insured.
Think of these results as a shortlist for comparison, rather than a guarantee of the cheapest price for your home.
1. Allianz
Allianz is one of the major insurers worth checking when comparing home and contents insurance.
It appears across CHOICE’s current comparisons, and Allianz-related policies are available under several financial brands as well.
One interesting thing about the Australian market is that the same underlying insurer can sometimes provide policies sold under different brands.
However, don’t assume that similar-looking policies will always have the same price. Brand, distribution channel and customer circumstances can affect the quote.
2. AAMI
AAMI is another major name worth including in a home insurance comparison.
CHOICE’s current comparison includes AAMI home and contents products, as well as contents-only policies.
AAMI can be particularly useful to quote alongside other Suncorp-related brands because prices can differ depending on the customer and product.
The important point is simple: get the quote rather than assuming one brand will be cheaper.
3. Suncorp
Suncorp is another insurer to put on your comparison list.
CHOICE’s May 2026 state analysis identified Suncorp Classic among the lower-priced options in Western Australia.
Again, that doesn’t mean it will be cheapest at your address.
Home insurance pricing is highly individual, particularly in areas exposed to storms, flooding, bushfires or other risks.
4. GIO
GIO is another major option to compare, particularly if you’re looking at alternatives within the Suncorp group.
CHOICE’s 2026 analysis listed GIO Classic among the lower-priced average options in Western Australia.
The practical lesson is that it can be worth obtaining several quotes rather than assuming your existing insurer will automatically give you the best renewal price.
5. QBE
QBE is also included in major Australian home insurance comparisons.
CHOICE’s May 2026 analysis placed QBE among the lower-priced average options in Victoria.
QBE is therefore worth including when you’re shopping around, particularly if your current renewal has increased.
Don’t Forget Contents-Only Insurance
If you’re renting or living in a strata property, you may not need to insure the entire building yourself.
For example, a renter normally needs to think about protecting their belongings rather than purchasing building insurance for the property they don’t own.
Contents-only policies can cover belongings against events such as theft, fire, storm and other insured events, depending on the policy.
CHOICE currently compares more than 60 contents insurance policies, including products from brands such as AAMI, NRMA, Youi, RACV, Apia, Woolworths Everyday and Aldi.
That’s useful because contents insurance isn’t simply about finding the lowest annual premium.
A $20,000 contents policy isn’t much help if replacing everything you own would actually cost $50,000.
The Underinsurance Problem
This is one of the biggest mistakes homeowners can make.
Imagine you estimate that rebuilding your house would cost $500,000 and insure it for that amount.
A few years later, construction costs have increased significantly. A major disaster occurs and the actual rebuilding cost is now substantially higher.
You could discover that your insurance doesn’t stretch as far as expected.
MoneySmart specifically warns Australians about underinsurance and recommends using building and contents calculators to help estimate appropriate sums insured.
Your contents can also be underestimated.
Think about walking through your home room by room and mentally replacing everything.
Television.
Laptop.
Phones.
Sofa.
Beds.
Kitchen appliances.
Clothes.
Tools.
Furniture.
Jewellery.
Sports equipment.
Suddenly the number can be much higher than expected.
Don’t Choose a Policy Just Because It Has a Cheap Premium
Here’s a simple comparison that explains the problem.
Policy A
Annual premium: $1,500
Excess: $1,000
Contents limit: $60,000
Policy B
Annual premium: $1,800
Excess: $500
Contents limit: $100,000
At first glance, Policy A looks better because you save $300.
But if you have a major claim, Policy B may leave you with a lower upfront excess and a higher contents limit.
That doesn’t automatically make Policy B better either. You need to check exactly what each policy covers, exclusions, sub-limits and settlement conditions.
This is why MoneySmart recommends comparing the Key Fact Sheet and reading the PDS for the detailed terms.
Check the Excess Before Buying
The excess is the amount you generally pay toward a claim.
For example, if you have a $1,000 excess and an accepted claim is worth $10,000, the insurer may pay the remaining amount according to the policy terms.
Increasing your excess can sometimes reduce your premium.
CHOICE’s recent 2026 research specifically highlights increasing the excess as one potential way to reduce home insurance costs.
But don’t choose an excess that would put you under financial pressure after an unexpected event.
Saving $200 on your annual premium isn’t particularly useful if you couldn’t comfortably pay a $2,000 excess when something goes wrong.
Check Flood, Storm and Bushfire Cover Carefully
Natural disaster protection deserves extra attention in Australia.
Don’t simply look for the word “natural disasters” and assume everything is covered.
Check the policy wording for:
- Flood
- Storm
- Storm surge
- Bushfire
- Water damage
- Earthquake
- Landslide
- Actions of the sea
- Temporary accommodation
The exact definitions and exclusions can vary between insurers.
This matters particularly if your property is located in an area exposed to severe weather.
What About Accidental Damage?
Accidental damage is another feature worth checking.
Standard cover may respond to specific insured events, while accidental damage cover can provide broader protection for certain unexpected incidents.
For example, accidentally damaging an expensive television is very different from losing it because of a house fire.
Some policies include accidental damage while others make it an optional extra.
CHOICE’s current contents comparison shows this difference across products, with some policies including accidental damage and others offering it as an optional feature.
Don’t pay for an optional feature you don’t need, but don’t remove useful cover simply to make the quote look cheaper.
A Simple Way to Compare Home Insurance Deals
If I were comparing policies today, I’d make a small spreadsheet with these columns:
Insurer
Annual premium
Excess
Building sum insured
Contents sum insured
Flood cover
Storm cover
Bushfire cover
Accidental damage
Temporary accommodation
Legal liability
Important exclusions
This makes the comparison much easier.
MoneySmart also recommends getting quotes from more than one insurer and using the government-standardised Key Fact Sheet to compare policies on a like-for-like basis.
Be Careful With Comparison Websites
Comparison websites can be useful for finding options quickly.
But they shouldn’t necessarily be your only source.
MoneySmart points out that comparison websites are businesses and may receive money through promoted links. They also may not show every available insurance option.
A better approach is to use comparison services to discover insurers, then check the insurer’s own quote and policy documents.
That extra step can reveal differences you might otherwise miss.
What If Your Renewal Price Has Jumped?
Don’t automatically accept the renewal.
Get several fresh quotes using the same information.
Then compare the new quotes with your existing policy.
If another insurer offers a lower price with similar cover, you have a useful benchmark for deciding whether to switch or ask your current insurer whether it can offer a better price.
However, don’t cancel the existing policy until you’ve confirmed the replacement cover is active.
One More Thing About Cash Settlements
This is particularly important when dealing with a major home claim.
In August 2026, ASIC raised concerns about cash settlements in home insurance claims after reviewing claims associated with Cyclone Jasper. The review found that cash settlements were used in more than 63% of final claims in its sample, and ASIC warned that settlements based on discounted repair quotes could leave some consumers facing additional costs.
So if you’re ever offered a cash settlement after a major loss, don’t look only at the dollar amount.
Check how the figure was calculated, whether it realistically covers the work, and what your policy says about your options.
Common Home Insurance Mistakes to Avoid
1. Choosing the cheapest quote
Cheap isn’t necessarily good value.
2. Insuring the house for its market value
The market value of a property isn’t necessarily the same as the cost of rebuilding it.
3. Forgetting expensive contents
Electronics, jewellery, tools and furniture can add up quickly.
4. Ignoring the excess
A cheap premium with an enormous excess may not suit your situation.
5. Assuming flood is automatically included
Check the policy wording.
6. Never reviewing your policy
Your home, belongings and financial situation can change.
7. Automatically renewing
Prices can change significantly between insurers and over time.
Final Thoughts
The best home and contents insurance deal in Australia isn’t necessarily the policy with the lowest advertised premium.
It’s the policy that gives you the protection you actually need at a price you can reasonably afford.
Start with several quotes. Compare the premium and excess. Check your building and contents sums insured. Pay particular attention to flood, storm, bushfire, accidental damage and temporary accommodation. Then read the Key Fact Sheet and PDS before making the final decision.
CHOICE currently compares a broad range of Australian home insurers and products, while MoneySmart provides government-backed guidance on comparing policies and avoiding underinsurance.
And remember: insurance prices are highly individual. A policy that is inexpensive for one household may be expensive for another because of location, property characteristics, claims history and cover levels.
The smartest way to find a genuine deal is therefore simple: compare several like-for-like quotes, then compare the cover — not just the price.
General information only. Insurance products, prices, eligibility, exclusions and policy terms change over time. Always check the current insurer documentation and Product Disclosure Statement before purchasing.