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Home Insurance Australia: Compare Providers and Cover (2026)

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Suburban Australian house with a checklist comparing home and contents insurance cover, sum insured and flood options

Last reviewed: September 29, 2026. The rules, timeframes, tax rates and company details in this guide were checked against government regulators, state revenue offices, the Insurance Council of Australia, AFCA and insurers' own websites on that date. Insurance rules and prices change often, and every policy is different. This is general information only. It is not personal financial advice and it does not recommend any insurer or product.

Short answer: There is no single "best" home insurance provider in Australia. The right policy depends on your property, where it is, and how much it would really cost to rebuild. Compare policies using each insurer's Key Facts Sheet (the government sets its layout) and then the Product Disclosure Statement (PDS). Set your sum insured with a rebuild calculator rather than your home's market value. Check how the policy treats flood, storm, bushfire and cyclone. Look at the excess and any limits, not only the premium. Many well-known brands share a parent company, so more brands does not always mean more choice. If a claim goes wrong, complain to the insurer first. If you're still not happy, you can go to the Australian Financial Complaints Authority (AFCA), which is free.

How home insurance works in Australia

Home insurance is a contract. You pay a premium, and in return the insurer agrees to pay for certain kinds of loss or damage to your home, your belongings or both, up to set limits. It all hinges on the word "certain". No home policy covers everything. Each policy has a list of events it covers, a list of things it won't cover, a maximum amount it will pay, and an excess, which is the amount you pay yourself when you claim.

In Australia, the legal framework for this contract comes mainly from the Insurance Contracts Act 1984 and its regulations. On top of that, most retail insurers subscribe to the General Insurance Code of Practice, and consumer regulator ASIC oversees how insurance is sold and how claims are handled. Three documents matter most when you buy:

  • The Key Facts Sheet (KFS). A short summary that insurers must provide for home building and home contents policies. Its content and layout are set by government, so KFSs from different insurers can be read side by side.
  • The Product Disclosure Statement (PDS). The full policy wording. It is long, but it is the document that decides what gets paid.
  • The Target Market Determination (TMD). Since the design and distribution obligations began on October 5, 2021, insurers must publish a TMD describing who a product is designed for. It is not a buying guide, but it can tell you quickly if a product was never meant for someone in your situation, such as a landlord or someone with a home under construction.

Your certificate of insurance (sometimes called a policy schedule) is the fourth piece. It shows your specific details: the address, the sum insured, the excess, any optional extras and the premium. When you claim, the insurer reads the PDS together with your certificate.

One point surprises many first-time buyers. Home insurance in Australia is bought and priced one property at a time, often down to the individual address. Two houses on the same street can be quoted very differently if one sits lower on a flood map or backs onto bushland. That is why broad "cheapest insurer" lists are not much use. The only price that matters is the one you are quoted for your address, with your chosen level of cover.

Types of cover: building, contents, combined, landlord and strata

Home building insurance

Building insurance covers the structure of your home: the walls, roof, floors and permanent fixtures. Most policies also cover things built in or attached, such as kitchen cupboards, built-in wardrobes, fixed floor coverings, in-ground pools, fences, garages, sheds and driveways. The detail varies, so the PDS definition of "home" or "buildings" is worth reading closely. A common trap is fixed items, like a retaining wall or a solar system, that one policy counts as building and another limits or excludes.

If you have a mortgage, your lender will usually require building insurance. This is to protect the security for the loan. It does not mean the lender has checked that your cover is enough. That job is yours.

Home contents insurance

Contents insurance covers your belongings inside the home: furniture, appliances, clothing, electronics, kitchenware, and in many policies items like curtains and carpets that are not fixed in place. Most contents policies have "sub-limits" on certain categories, such as jewellery, watches, art, cash and collections. If one item or group is worth more than the sub-limit, you may need to list it separately (often called "specified items") and pay more.

Contents cover usually protects your belongings only while they are at the insured address. Cover for items you carry away from home, such as a laptop, phone, bike or camera, is normally an optional extra, often called portable contents or personal valuables cover.

Combined home and contents

Many insurers sell building and contents together as one policy, often with a discount compared with buying them separately. Combining can also make claims simpler after a large event, because one assessor looks at both the house and what was inside. The trade-off is that you are comparing a bundle. A policy that is excellent for building cover may have weak contents sub-limits, or the other way around.

Landlord insurance

If you own a property that you rent out, an ordinary home policy may not be enough, and some specifically exclude tenanted homes. Landlord policies are designed for this. Depending on the policy, they may include cover for loss of rent, tenant damage (malicious or accidental), and the landlord's own contents such as carpets, blinds and appliances. The TMD for a landlord product is a quick way to confirm it fits your type of rental. Short-stay holiday letting is often treated differently from long-term leases.

Strata properties

If you own an apartment or townhouse in a strata scheme, the building itself is usually insured by the owners corporation (also called the body corporate or strata company, depending on the state) under a strata policy. You typically need your own contents insurance, and you may want cover for fixtures inside your lot that the strata policy does not cover, such as some internal fittings. Rules vary by state and by scheme, so ask the strata manager for the current strata policy and check what it covers inside your lot before you buy.

Listed events vs accidental damage

Most Australian home policies come in two broad styles.

Listed events (sometimes called defined events). The policy covers damage caused by events named in the PDS. Moneysmart lists the usual ones: fire, storm, flood, theft, lightning, earthquake and malicious damage. Many policies add others, such as escape of liquid (a burst pipe), impact damage (a tree or vehicle hitting the house), explosion and riot. If damage happens in a way that does not fit one of the listed events, it is generally not covered.

Accidental damage. This is broader. It covers sudden and unexpected damage that is not on a list, such as dropping a TV, spilling paint on the carpet, or knocking a hole in a wall while moving furniture. Some insurers sell accidental damage as a higher tier of policy, and others as an add-on. Moneysmart notes that most contents policies do not include accidental damage by default.

Even "accidental damage" cover has exclusions. Wear and tear, gradual damage, pests and poor workmanship are commonly excluded, along with a range of specific items. It is wider than a listed-events policy, but it is not "everything".

The choice comes down to how much risk you want to carry yourself. If a small accident would not strain your budget, a listed-events policy with a sensible excess may be enough. If you have young children, expensive screens or a lot of fragile items, the extra premium for accidental damage may be worth a look. Just compare the extra cost with what you would actually claim, and remember that every claim carries an excess.

Sum insured, total replacement and underinsurance

This is the single biggest decision in buying home building insurance, and the one most often got wrong.

Sum insured

Most Australian home building policies are "sum insured" policies. You pick a dollar figure, and that is the most the insurer will pay for the building in one event. If a fire destroys the house and rebuilding costs more than your sum insured, the difference comes out of your pocket.

The sum insured should reflect the cost to rebuild, not the market value of your property. Market value includes the land, and land is not destroyed by fire or storm. In many parts of Australia, land is most of the price. On the other hand, rebuilding a house often costs more than people expect. You pay current building rates, and you may also face costs that did not exist when the house was first built.

What a rebuild really involves

After a total loss, the costs usually include:

  • demolition and removal of debris, which can be expensive if asbestos is involved
  • architect, engineer, surveyor and council fees
  • building to current codes, such as bushfire attack level (BAL) standards or energy efficiency rules the original house never had to meet
  • the construction itself, at current prices for labour and materials
  • temporary accommodation while the rebuild happens

Some policies pay a few of these on top of the sum insured, as separate "additional benefits". Others pay everything out of the one sum insured. ASIC described this difference years ago: some insurers pay supplementary costs from within the sum insured, while others treat the sum insured as covering only materials and the builder, with extras paid on top. Two policies with the same sum insured can therefore pay out quite different totals. The PDS will tell you which approach it takes.

Safety nets and total replacement

Many sum-insured policies include a "safety net" or "extended replacement" benefit. This lets the insurer pay a set percentage above your sum insured if rebuilding costs more. The percentage and conditions vary by insurer, and some only offer it as an option. Check the exact wording.

Moneysmart also refers to "total replacement" policies. These promise to pay the full cost to rebuild your home to a similar standard, whatever that turns out to be. They are much less common than sum-insured policies. Where they are available, they usually rely on detailed information about the home and carry their own conditions. Read how the PDS defines "similar standard" and what it excludes.

How to choose your sum insured

Moneysmart recommends using a building calculator. Most insurers have one on their website. The Insurance Council of Australia also has building and contents calculators on its Understand Insurance site. According to the ICA, typical building costs come from Cordell Information and contents costs from Sum Insured Pty Ltd. These tools give an estimate based on your answers about size, materials, slope and features.

Treat calculator results as a starting point. ASIC's research on underinsurance (Report 54, 2005) found that different online calculators could give very different figures for the same home. The ICA's own calculator says its results are an approximate guide only, and suggests an architect, builder, quantity surveyor or valuer for a more accurate figure. If your home is unusual, heritage-listed, on a steep block, in a remote area or in a high bushfire-risk zone, a professional estimate is well worth considering.

A few practical habits help:

  • Run two or three calculators and see how far apart they are. If they differ a lot, find out why.
  • Answer the questions honestly and in detail. Ceiling height, roof type, slope and number of bathrooms can all move the result a long way.
  • Update your sum insured after renovations, extensions, a new pool or a new deck.
  • Review it every year at renewal. Some insurers index the sum insured automatically. Indexation may not keep pace with actual building costs, especially after a disaster when trades are in high demand.

Why underinsurance matters

ASIC's 2005 report found that many homeowners were underinsured by 10% or more against the current cost of rebuilding. It pointed to reasons that still sound familiar: homeowners carry the burden of estimating rebuild costs, the tools are imperfect, people don't increase cover as building costs rise, and policies are hard to compare. Moneysmart's current advice is the same. The best protection is making sure your cover matches the real cost to rebuild your home and replace your belongings, and reviewing it often.

Underinsurance usually only shows up after a major loss, which is the worst time to find it. That is why the next section works through a hypothetical example.

Worked example: estimating a rebuild cost (hypothetical)

This example is hypothetical. The rates, costs and policy terms are invented to show the arithmetic. They are not real quotes or averages for any location or insurer.

Priya owns a single-storey brick-veneer house with a floor area of 180 square metres. She set her building sum insured at $500,000 several years ago and has not changed it. Her house is destroyed by fire.

Step 1: Estimate the rebuild cost. Suppose a builder estimates construction at $3,000 per square metre for a house like hers.

  • Construction: 180 m² x $3,000 = $540,000
  • Demolition and debris removal: $30,000
  • Professional fees (architect, engineer, surveyor, council), assumed at 10% of construction: $54,000
  • Upgrades to meet current building codes: $20,000

Total estimated rebuild cost: $540,000 + $30,000 + $54,000 + $20,000 = $644,000.

Step 2: Compare with the policy. The outcome depends on how her policy is structured.

Policy structure (hypothetical)Maximum paid for rebuildShortfall Priya pays
All costs paid from a $500,000 sum insured, no safety net$500,000$644,000 - $500,000 = $144,000
$500,000 sum insured plus a 25% safety net$500,000 x 1.25 = $625,000$644,000 - $625,000 = $19,000
$500,000 for construction; demolition and fees paid as extra benefits up to $90,000$500,000 + $84,000 = $584,000 (construction capped at $500,000, plus $30,000 + $54,000 in extras)Construction gap $40,000 + code upgrades $20,000 = $60,000
Sum insured set at $650,000, all costs included$644,000 (actual cost is below the cap)$0 (apart from the excess)

In the third row, construction costs $540,000 but is capped at $500,000, so there is a $40,000 gap. Demolition ($30,000) and fees ($54,000) total $84,000, which falls within the $90,000 extra-benefit limit and is paid in full. The code upgrades ($20,000) are not covered in this hypothetical policy. The total shortfall is $40,000 + $20,000 = $60,000.

Step 3: The cost of fixing it. Raising the sum insured from $500,000 to $650,000 would increase her premium. By how much depends on the insurer and the property. For most homes, though, the extra premium each year is small compared with a gap of tens of thousands of dollars that can open up after a total loss. A partial loss, such as a damaged kitchen, may be well within the sum insured either way. Underinsurance bites hardest after a total or near-total loss, which is exactly what bushfires, cyclones and major floods cause.

The example also leaves out temporary accommodation. Many policies pay it for a limited time or up to a limit, and the terms differ. After a major regional disaster, rents and building costs can both jump, so a figure that looked generous on paper may run out sooner than expected.

Key exclusions and limits to look for

Every PDS has a section on what is not covered. Some exclusions are almost universal. Others differ from one insurer to the next, which makes them important when you compare. Common ones include:

  • Wear and tear, rust, rot and gradual deterioration. Insurance is for sudden events, not maintenance. A roof that leaks because it is old is usually not covered, even if the leak shows up during a storm.
  • Gradual leaks. Water that has seeped over weeks or months, such as from a slowly leaking shower, is often excluded. A sudden burst pipe is usually covered under escape of liquid.
  • Pests and vermin. Termite, rodent and insect damage is commonly excluded.
  • Faulty workmanship and design. Defects in how a house was built are generally a builder's warranty matter, not insurance.
  • Actions of the sea. Erosion, high tides and coastal inundation are generally excluded. Storm surge is treated differently by different insurers, and cyclone-related storm surge falls within the scope of the Cyclone Reinsurance Pool (see below). Read the definitions carefully.
  • Unoccupied homes. Many policies limit or remove cover if the home is left unoccupied for more than a set period, often 60 or 90 days. Check the number in your PDS if you travel for long periods or own a holiday house.
  • Intentional damage by you or someone you invited.
  • Tree root and landslide damage, which some policies exclude or limit unless it results from a covered event.

Look for limits as well as exclusions. A policy might cover fences but only up to a certain amount, cover a matching set of cabinets only for the damaged area, or limit cover for items such as spa pools, jetties, retaining walls and solar panels. These details rarely matter until the day they do.

Also watch for "embargoes". Many insurers will not issue new policies or increase cover in an area once a bushfire, flood or cyclone is threatening. Some also have waiting periods on certain events for new policies. You cannot usually buy cover as a storm approaches, so sort it out in the calm months.

Flood, storm, bushfire and cyclone cover

The standard flood definition

Until 2012, many Australians discovered after a disaster that each insurer defined "flood" differently. Since then, the Insurance Contracts Regulations have included one standard meaning of flood for home building, home contents, strata and small business policies. In short, flood means normally dry land being covered by water that has escaped or been released from the normal confines of a lake, river, creek or other natural watercourse (whether or not altered or modified), or of a reservoir, canal or dam. The regulations apply this meaning wherever an eligible policy uses the word "flood", even if the insurer's own document says otherwise.

The definition does not require flood cover. Many policies include it, some let you remove it to lower the premium, and some exclude it. The Key Facts Sheet has to show whether flood is covered. If your home is anywhere near a creek, river or low-lying land, check this line first.

Storm vs flood

The difference matters because some policies cover storm but not flood. Moneysmart describes storm damage as including damage from lightning, cyclones, strong winds, rainwater, hail and snow. Rainwater running over the ground (sometimes called run-off or flash flooding) is usually treated as storm, not flood, in many policies. Water from a creek overflowing its banks is flood. When both happen in the same event, an assessor has to decide what caused which damage. This is where many disputes start.

Bushfire

Fire and bushfire are standard listed events in almost all home policies. The questions to check are:

  • Is your sum insured high enough to rebuild to the current bushfire standards for your site? Rebuilding in a bushfire-prone area can mean higher construction costs.
  • Are there limits on temporary accommodation, debris removal and fencing?
  • Does the policy have waiting periods or embargoes that apply to new policies?

Cyclone and the Cyclone Reinsurance Pool

Northern Australia has long had some of the country's highest home insurance premiums. The ACCC's Northern Australia Insurance Inquiry (final report, November 2020) found that home, contents and strata premiums there were, on average, considerably higher than in the rest of Australia and had risen faster over the previous decade. It also found that insurers were increasingly pricing risk at the level of individual addresses, which caused very large increases for some households.

The federal government's response included the Cyclone Reinsurance Pool, run by the Australian Reinsurance Pool Corporation (ARPC). It began on July 1, 2022 and is backed by a $10 billion government guarantee, which the ARPC says is reinstated each year. Insurers pass part of their cyclone risk to the pool. It covers damage from a cyclone and related flooding, including wind, rain, run-off, storm surge and riverine flood, from the start of the cyclone until 48 hours after it ends. Eligible policies include residential home and contents (including landlord and some farm residential policies), residential strata, and small commercial property policies. Joining is mandatory for insurers above a premium threshold.

You don't deal with the pool directly. You buy a normal policy from an insurer, and the insurer uses the pool behind the scenes. The ARPC says the pool aims to lower reinsurance costs for policies with medium-to-high cyclone exposure, and the arrangement allows discounts for eligible mitigation work on a property. It does not guarantee lower premiums for any particular home. If you live in a cyclone region, ask insurers whether they offer discounts for things such as roof tie-downs, cyclone shutters or garage door bracing.

How premiums are set, including taxes and levies

Insurers do not publish their pricing formulas. Based on the ACCC's inquiry work and insurers' own explanations, premiums usually reflect:

  • Location risk, down to the individual address, for flood, bushfire, cyclone, storm and crime.
  • The building: age, construction materials, roof type, size, and features such as a pool.
  • The sum insured and any extras you add.
  • The excess you choose. A higher excess generally means a lower premium.
  • Your claims history and other details you declare.
  • Security features such as deadlocks and alarms (mainly for contents).
  • The insurer's own costs, including reinsurance, which rises after big catastrophe years.
  • Taxes and levies added on top.

The ACCC also noted that different insurers can quote very different premiums for the same property. In its words, "different insurers can quote vastly different premiums for the same property." That is the strongest argument for getting several quotes at each renewal instead of rolling over automatically.

GST, stamp duty and emergency services levies

Your premium usually includes GST, and in most states and territories an insurance duty (often called stamp duty) on top. Some state revenue offices apply the duty to the premium including GST. The published general insurance duty rates for home insurance were:

State or territoryInsurance duty on home insurance (general insurance)Where to confirm
New South Wales9% of the premium (general insurance type A)Revenue NSW
Victoria10% for non-business insuranceState Revenue Office Victoria
Queensland9% of the premium paid, including GST (class 2)Queensland Revenue Office
Western Australia10% of the total premiumWA Department of Treasury and Finance
South Australia11% of the premium subject to dutyRevenueSA
Tasmania10% of the premium paidState Revenue Office Tasmania
Northern Territory10% of the premiumNT Government
Australian Capital TerritoryNo duty on general insurance (abolished in 2016)ACT Revenue Office

These are the published headline rates as at September 29, 2026. Exemptions and special rules apply to some policy types, and rates can change in state budgets. Confirm with the relevant revenue office if the exact figure matters to you.

Hypothetical illustration. Say a Queensland policy has a base premium of $1,500. GST at 10% adds $150, making $1,650. Duty at 9% of the premium including GST is $1,650 x 0.09 = $148.50. The total is $1,650 + $148.50 = $1,798.50. This is simplified and ignores any other charges. It shows why taxes can add a noticeable share to what you pay.

NSW Emergency Services Levy. New South Wales still funds a large share of its fire and emergency services through a levy built into insurance premiums, rather than through a levy on property. Insurers pay the Emergency Services Levy and pass the cost on to policyholders, and stamp duty then applies to the premium. The NSW Government has committed to replacing this insurance-based levy with a property-based levy. In February 2026 it referred reform options to a parliamentary inquiry, and a Legislative Assembly select committee is due to report by November 18, 2026. As at September 29, 2026, the insurance-based levy is still in place. If you are in NSW, check the premium breakdown on your quote or renewal notice. Most insurers list the ESL, GST and stamp duty separately.

Who sells home insurance in Australia

Search for "home insurance providers Australia" and you will see dozens of names. What those lists rarely explain is that many brands belong to a small number of groups, and the company actually on risk (the "insurer" or "issuer" named in the PDS) is not always the brand on the ad. Knowing who stands behind a brand helps you avoid "comparing" two products that are close cousins, and tells you which company you are dealing with if something goes wrong.

The table below lists some well-known participants and the relationships we could confirm from company and regulator sources. It is not a ranking and not a complete list. Inclusion is not a recommendation.

BrandGroup or issuer (as publicly stated)Notes
NRMA Insurance, SGIO, SGIC, CGUInsurance Australia Group (IAG)IAG consolidated its Australian insurance licences; Insurance Australia Limited is the insurer for many IAG brands.
RACVIAG (underwriting joint venture with RACV)IAG products are distributed in Victoria under the RACV brand under a relationship dating from 1999.
RACQ InsuranceIAGIAG announced it had completed its acquisition of RACQ Insurance in 2025, with a long-term distribution agreement with RACQ.
AAMI, GIO, Suncorp Insurance, Apia, ShannonsSuncorp GroupAll are listed as Suncorp Group brands. Check the PDS for the issuing company.
AllianzAllianz AustraliaPart of the global Allianz group. Check the PDS for the issuing company.
Budget DirectAuto & General Insurance Company LimitedThe PDS names the underwriter.
YouiYoui, owned by South Africa's OUTsurance groupSells home and car insurance directly.
CommBank home insuranceHollard Insurance Partners LimitedDistributed by the Commonwealth Bank; CommBank is not the insurer.

There are many more participants, including QBE and a number of smaller and specialist insurers. Ownership and distribution deals change. For example, IAG's proposed acquisition of RAC WA's insurance business had been opposed by the ACCC as at late September 2026, while its RACQ deal went ahead. Always check the PDS and the certificate of insurance to see which company is actually insuring you.

Why this matters when comparing. Brands within the same group may use different policy wordings, prices and claims teams, so they are not identical. They can still share underlying approaches to risk. If you want genuinely different quotes, include insurers from more than one group.

What about "best" or "top-rated" lists? Award tables and star ratings come from comparison sites, consumer groups and industry bodies, each using its own method. Some are paid, commercial or based only on the insurers a site partners with. Rather than relying on a ranking, check two things you can verify yourself: the policy documents, and how the insurer handles complaints. AFCA publishes an interactive "Datacube" that shows, for each financial firm with four or more complaints in a 12-month period, how many complaints were received, how long they took to resolve and how they were resolved. A large insurer will naturally have more complaints than a small one, so compare those figures thoughtfully rather than as a score.

How to compare policies like-for-like

Comparison websites can be a useful starting point, but they may not cover every insurer, and their default settings may not match what you need. The most reliable way to compare is to put the Key Facts Sheets side by side and then check the PDS for anything that matters to you.

Use this checklist for each policy you are considering:

Item to checkWhere to find itWhat to look for
Type of coverKFS, PDSListed events or accidental damage; building, contents or both
FloodKFSIncluded, optional or excluded; any conditions
Storm, storm surge, run-offPDS definitionsHow storm and storm surge are defined; exclusions for sea action
Sum insured basisPDSWhether demolition, fees and code upgrades come out of the sum insured or on top
Safety netPDS, quotePercentage above sum insured, and whether it is included or optional
ExcessQuote, PDSBase excess and any extra excesses for particular events (such as earthquake or unoccupied homes)
Temporary accommodationPDSTime limit and dollar limit
Contents sub-limitsPDSLimits for jewellery, art, cash, collections and electronics; how to specify items
Portable contentsPDS, quoteWhether items away from home are covered and at what cost
New for oldPDSWhether contents are replaced with new items or paid on depreciated value
UnoccupancyPDSMaximum days the home can be empty without losing cover
Legal liabilityKFS, PDSAmount of cover if someone is injured on your property
Cash settlement termsPDSWhen the insurer may pay cash instead of repairing, and how it calculates the amount
Who the policy suitsTMDWhether you fit the target market (owner-occupier, landlord, strata, home under construction)
Payment optionsQuoteWhether paying monthly costs more than paying annually

Some tips from experience:

  • Set the same inputs for every quote. Use the same sum insured, the same excess and the same extras. A cheaper quote with a $2,000 excess is not comparable with one at $500.
  • Save a copy of each KFS and PDS. Insurers update their documents. You want the version that applies to your policy.
  • Answer questions carefully. Under the law, your duty is to take reasonable care not to make a misrepresentation when you answer the insurer's questions. Getting details wrong can affect a later claim.
  • Check the monthly price. The ACCC's northern Australia inquiry flagged that paying by instalments can cost more than paying in one go. Compare the total you would pay over a year.
  • Don't let price alone decide. Two policies can have very different wordings on flood, temporary accommodation and code upgrades. Those are the details that decide how a large claim goes.

Reading a PDS is a skill that carries over to other kinds of cover. If you've read a travel policy's fine print, the same approach works here. Our guide to what travel insurance covers and what it doesn't walks through that method in a different context.

Lowering the cost without losing cover

"Cheap home insurance" is a popular search, but the cheapest premium can turn out to be the most expensive choice after a claim. Some ways to reduce what you pay while keeping cover that works:

  • Shop around at renewal. Premiums change every year, and loyalty is not always rewarded. Compare your renewal with the price you were paying last year and with at least two or three other insurers from different groups.
  • Consider a higher excess. Raising the excess usually lowers the premium. Pick an amount you could pay tomorrow without stress.
  • Bundle, but check. Combined home and contents, or multi-policy discounts, can save money. Check that each part of the bundle still meets your needs.
  • Remove extras you don't need. Portable contents cover for items you never take out, or accidental damage on a sparsely furnished rental, may not be worth it. Keep extras that fill a real gap.
  • Improve security and resilience. Deadlocks, alarms, smoke alarms and, in hazard areas, work such as roof tie-downs or ember guards may earn a discount. Ask each insurer what it recognises.
  • Pay annually if you can. If paying monthly costs extra, paying in one lump sum saves it.
  • Keep your details accurate. Tell the insurer about new security features or a lower-risk building material if they may affect the price.

What you should not do to save money: lower the sum insured below the true rebuild cost, drop flood cover without checking your actual flood risk, or skip contents cover because you assume your belongings are not worth much. Adding up the cost of replacing everything you own, from clothes to cookware, often surprises people.

Renters and contents-only cover

If you rent, the landlord's insurance covers the building, not your belongings. If a fire, burst pipe or break-in damages your things, the landlord's policy won't help you. That is what renters' contents insurance is for.

Renters' policies in Australia are usually contents policies, sometimes with features for tenants such as cover while moving, or limited cover for accidental damage you cause to the landlord's property (for example, a stain on the carpet). Liability cover matters too. If a visitor is injured because of something you did, or you accidentally cause damage to the building, you could be asked to pay.

Moneysmart suggests using a contents calculator to estimate how much your belongings would cost to replace. Walk through each room and include items people forget, like clothes, linen, kitchen equipment and tools. Consider taking photos or video of your belongings and storing them online. They make a claim much easier if you ever need one.

If you're comparing how renters' cover works in different countries, our article on what renters insurance covers in the US explains the American version. The basic idea is similar, but the policy terms and laws differ, so use Australian PDS documents for any decision here.

Making a claim: steps and Code of Practice timeframes

Step by step

  1. Make it safe. Protect people first, then prevent further damage where you safely can (for example, a tarp on the roof). Most policies expect you to take reasonable steps to limit loss and will generally cover reasonable emergency repair costs. Keep receipts.
  2. Document everything. Take photos and video before cleaning up. Don't throw damaged items away until the insurer says you can, unless they are a health hazard. In that case, photograph them and keep a sample if possible.
  3. Report theft or malicious damage to police and note the report number.
  4. Contact your insurer promptly. Most have online claims and a phone line. You'll get a claim number. Write down who you speak with and when.
  5. Provide the information requested. This may include receipts, bank statements, photos, quotes and a list of damaged items.
  6. Assessment. For larger claims, the insurer may send an assessor, builder or other expert. You can ask for a copy of reports that the insurer relies on.
  7. Decision and settlement. The insurer will accept or deny the claim. If it accepts, it will either manage repairs through its own builders, pay you to arrange repairs (cash settlement), or replace items.

Timeframes under the General Insurance Code of Practice

The current General Insurance Code of Practice commenced on October 5, 2021 and was updated in October 2023. Most retail general insurers subscribe to it. Key claims commitments, as set out on the Insurance Council's Code site, include:

  • Deciding whether to accept or deny a claim within 10 business days of receiving all the information needed and completing any investigation.
  • In ordinary circumstances, making a decision within 4 months of receiving the claim. Longer timeframes (up to 12 months) can apply in exceptional circumstances, such as a catastrophe, suspected fraud or a claimant who is not responding.
  • Keeping you informed about the progress of your claim at least every 20 business days.
  • Where you can show urgent financial need, considering fast-tracking the claim or making an advance payment. The Code sets 5 business days for this.
  • Giving you access to information the insurer relied on to assess your claim, generally within 30 calendar days of your request.

The Code also contains commitments on financial hardship, vulnerable customers, how assessors and investigators behave, and how cash settlements are explained. Moneysmart notes that if your claim relates to a natural disaster and was finalised within a month of the event, you can ask for a review within 12 months if you think the assessment of your loss was not complete or accurate.

The Code is changing. The Insurance Council consulted on a redrafted Code in mid-2026 (submissions closed on July 21, 2026). Industry reports indicate it plans to seek ASIC approval and expects a transition period of about two years before the new version starts. Until then, the current Code applies. Check which version is in force when you claim.

Cash settlement vs repairs

A cash settlement means the insurer pays you money instead of arranging repairs. It can give you flexibility, but it also shifts the risk of cost overruns to you. ASIC's 2023 review of home insurance claims (Report 768, "Navigating the storm") looked at more than 218,000 claims from six insurers and found weaknesses in communication, project management, identifying vulnerable customers, complaints handling and resourcing. ASIC has since pushed insurers to improve how they explain cash settlements.

Before you accept a cash settlement, get your own builder's quote, ask how the insurer worked out its figure, and read Moneysmart's guidance on cash settlements. Accepting a settlement may end the claim, so you want to be confident the amount is enough.

How to complain: the insurer first, then AFCA

If you disagree with a claim decision, the delay, the amount offered or how you were treated, there is a free, structured path.

Step 1: Internal dispute resolution (IDR)

Make a formal complaint to the insurer. Say clearly that it is a complaint, explain what went wrong, and say what outcome you want. Under the Code, the insurer should respond to a complaint within 30 calendar days. Its final response should tell you about your right to go to AFCA if you're not satisfied. Keep copies of everything you send and receive.

Step 2: AFCA

The Australian Financial Complaints Authority is the external dispute resolution scheme for financial services, including general insurance. It is free for consumers and independent of insurers. AFCA can consider complaints that are lodged within two years of the insurer's IDR response and within six years of when you became aware (or should reasonably have become aware) of the loss. Always check AFCA's rules for the limits that apply to your situation.

You can lodge a complaint with AFCA online, by phone, by email or by letter. AFCA will usually refer the matter back to the insurer first if you haven't gone through IDR. It may try to resolve the complaint through negotiation or conciliation, and can make a binding determination if needed. If you accept an AFCA determination, the insurer is bound by it.

Help along the way

Free financial counsellors (through the National Debt Helpline) and community legal centres can help, especially after disasters. Moneysmart also has guidance on recovering from natural disasters and making insurance claims. You don't need to pay a claims advocate or lawyer to use AFCA.

When this doesn't apply

This guide is about standard home building and contents insurance for residential properties in Australia. It may not fit your situation if:

  • Your home is under construction or major renovation. Many standard policies limit cover during building work. Builders usually hold construction insurance, and you may need a specialist policy.
  • You own a strata unit. The owners corporation insures the building. Your focus is contents, fixtures in your lot and your share of any strata excess.
  • You live in a mobile home, caravan or relocatable home. These often need specialist cover. Our guide on home insurance for mobile homes covers the US market, but the questions it raises about structure, location and tie-downs are worth asking here too.
  • You run a business from home. Business equipment, stock and customer visits may not be covered by a home policy.
  • You own a heritage-listed, high-value or unusual home. Standard calculators may not work, and specialist insurers or brokers may be better placed.
  • You rent out your property on short-stay platforms. Many home and landlord policies restrict or exclude this.
  • You live outside Australia. The rules on flood definitions, Key Facts Sheets, the Code and AFCA are Australian. They do not apply to policies in other countries.

If your situation is complex, an insurance broker (who should hold an Australian Financial Services licence or be an authorised representative) can help. Ask how the broker is paid, and which insurers they can access.

FAQ

Who is the best home insurance provider in Australia?

There isn't an objective "best" that fits everyone. Premiums are set address by address, and policy wordings differ in ways that matter differently to each household. The practical approach is to get quotes from several insurers from more than one group, compare their Key Facts Sheets and PDSs, and check their complaints data on AFCA's Datacube.

What's the difference between home and contents insurance?

Home (building) insurance covers the structure and permanent fixtures. Contents insurance covers your belongings. You can buy either, or both together as a combined policy. Owners usually need building cover. Renters usually only need contents.

Is flood covered by home insurance in Australia?

It depends on the policy. Since 2012 there has been a standard legal definition of flood for home and contents policies, but insurers are not required to include flood cover. Many do, some offer it as an option, and some exclude it. The Key Facts Sheet shows whether flood is covered.

Should I insure my home for its market value?

No. Insure the building for the cost to rebuild it, including demolition, professional fees and meeting current building codes. Market value includes land, which is not destroyed in a fire or storm. Use rebuild calculators or a professional estimate.

How long does an insurer have to decide my claim?

Under the current General Insurance Code of Practice, insurers aim to decide within 10 business days of having all the information they need. In ordinary circumstances they should decide within 4 months of receiving the claim. They should also update you at least every 20 business days. Longer periods can apply in exceptional cases like catastrophes.

What can I do if my claim is denied?

Ask for the reasons in writing and for the information the insurer relied on. Then lodge a formal complaint with the insurer. If you're not happy with its response, or it doesn't respond within 30 calendar days, you can take the complaint to AFCA for free.

Why do some brands have the same parent company?

Australia's general insurance market is concentrated, and large groups run several brands aimed at different customers. IAG and Suncorp Group each own multiple well-known brands. The PDS names the company that actually issues your policy.

Does my mortgage lender's requirement mean I have enough cover?

No. Lenders typically require building insurance to protect the loan security, but they don't check that your sum insured matches the cost of rebuilding. That's your responsibility. If you're buying a home, budget for insurance as part of the upfront and ongoing costs. Our explainer on mortgage closing costs is US-focused, but it shows how insurance fits into the wider cost of buying.

What is the NSW Emergency Services Levy on my premium?

In NSW, part of emergency services funding is collected through insurers, who pass the cost into premiums, and stamp duty is then charged on top. The NSW Government has committed to replacing it with a property-based levy, and a parliamentary committee was due to report by November 18, 2026. Your quote or renewal notice should show the levy amount separately.

Can I get cover when a bushfire or cyclone is already approaching?

Usually not. Insurers commonly put embargoes on new policies and increases in cover in areas under immediate threat. Some also apply waiting periods for certain events. Arrange cover well before the hazard season.

Bottom line

Finding a good home insurance policy in Australia is less about picking a brand from a ranking and more about getting four things right. The first is the sum insured: base it on the full cost of rebuilding, not market value, and check it every year. The second is how the policy treats the hazards you actually face, whether flood, storm, bushfire or cyclone. Read the Key Facts Sheet first and the PDS second. The third is comparing quotes like-for-like from insurers in more than one group, with the same inputs. The fourth is knowing your rights if a claim goes badly. The Code of Practice sets timeframes, and AFCA is free.

Premiums are rising in many parts of the country, and taxes and levies add to what you pay. It can be tempting to cut cover to save money. The worked example above shows why that can backfire. A modest saving on the premium can turn into a gap of tens of thousands of dollars after a total loss. If you're unsure, spend an hour with two calculators and three Key Facts Sheets before renewal. It is one of the best-value hours in household finance.

Sources

All sources accessed September 29, 2026.

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