Australians paying more for home and contents insurance as premiums jump 14%

Australians are forking out more for insurance, with new Canstar research showing the average annual home and contents premium has jumped by 14%, or as much as $343, in the past 12 months.

Canstar’s 2025 analysis of around 25,000 new customer quotes found NSW has faced the most significant percentage increase in home and contents insurance, with prices up 18% year-on-year to an estimated $2,613.

← Mobile/tablet users, scroll sideways to view full table →

Source: www.canstar.com.au. Premiums based on quotes obtained for Canstar’s 2024 & 2025 Home and Contents Insurance Awards and Star Ratings (September 2024 & September 2025), for a range of addresses, property assumptions and building sum insured amounts between $300,000 and $1,500,000 and a contents sum insured of $50,000. *QLD excludes the portion of the state north of, but not including, Rockhampton.

Why have premiums risen by so much?

While there are a range of factors that can impact the cost of insurance, the increasing frequency of extreme weather events and the high costs of rebuilding and reinsurance have been major drivers in the continued rise in home and contents insurance premiums. Administration and staffing costs affecting most industries are also taking their toll.

However, the extent of any increase over the past 12 months depends on each customer’s circumstances and chosen insurer. Existing customers may experience different premium changes than new customers.

How homeowners could save on average $766

These premium price hikes come at a difficult time for many household budgets and could force some to consider downgrading or ditching their cover altogether. However, Australians should do the maths on switching insurers first.

Canstar has evaluated insurance policies from over 45 providers, analysing around 25,000 quotes covering eight regions, three cover types and up to two different sum insured amounts to identify potential savings available by switching to a top-rated provider.

A homeowner who is paying an average annual home and contents premium of around $2,795, who switches to a Canstar 5-Star rated policy, could potentially reduce their costs by $766—a 27% saving.

← Mobile/tablet users, scroll sideways to view full table →

Source: www.canstar.com.au. Premiums based on quotes obtained for Canstar’s 2025 Home and Contents Insurance Star Ratings and Awards (September 2025), for a range of addresses, property assumptions and building sum insured amounts between $300,000 and $1,500,000 and a contents sum insured of $50,000. *QLD excludes the portion of the state north of, but not including, Rockhampton.

Compare Home Insurance

A Canstar 5-Star rated policy recognises value beyond price, assessing features like temporary accommodation, valuables cover, new-for-old replacement, accidental damage, claims ease, and flexible options.

The ratings highlight not only potential savings but also help Australians choose from a shortlist of expertly assessed products. Top performers earn Outstanding Value Awards, while customer feedback on claims satisfaction informs the Most Satisfied Customers – Home Insurance Claims Award.

This year’s award-winning home insurance providers, based on Canstar’s extensive research, include:

• Outstanding Value – Home and Contents Insurance: AAMI, Allianz Australia, QBE, Westpac (incl. Bank of Melbourne, BankSA and St. George Bank)

• Outstanding Value – Home Insurance: AAMI, Allianz Australia, QBE, Westpac (incl. Bank of Melbourne, BankSA and St. George Bank)

• Outstanding Value – Contents Insurance: AAMI, Suncorp Insurance, Westpac (incl. Bank of Melbourne, BankSA and St. George Bank)

• Most Satisfied Customers – Home Insurance Claims: RAC

Checklist for reviewing cover for a new policy, renewing or switching providers:

1. Cost – Don’t just auto-renew. Compare your premium to last year’s and ask about the reason for any change. Shop around to make sure it’s a competitive offer for the level of cover you need.
2. Sum insured – Ensure your home’s rebuilding cost and the replacement value of contents reflect today’s prices. Also, check any limits on specific items or groups to avoid being underinsured.
3. Excess – Confirm whether your excess has changed. Adjusting it higher could reduce your premium, but you need to make sure you have the funds to cover a higher excess at claim time.
4. Policy updates – Read through any recent changes to terms or conditions that could affect your cover. Insurers may alter definitions or limits, which could affect your cover.
5. Natural disasters – Review cover for events such as floods, storms, bushfires or cyclones.
6. Exclusions – Take note of what’s not covered. Exclusions can include wear and tear, mould, unoccupied properties and more, which vary between insurers.
7. Optional covers – Consider if you need cover for high-value items above the usual limits, portable items away from home or accidental cover. These may need to be added separately.

Canstar’s Data Insights Director, Sally Tindall says, “Homeowners across the country are experiencing rising home insurance costs in a year marked by wild weather events in many regions.”

“Claims from ex-tropical cyclone Alfred alone have exceeded 125,000 at a cost of $1.36 billion, according to the Insurance Council of Australia.\

“Canstar research shows the average new customer home and contents insurance premium has risen by $343 in the space of 12 months. That’s a steep climb for many households, and the concern is some may look to downgrade their cover or ditch it altogether.

“Insurance isn’t just for weather-related damage – it also protects against accidental damage, burglary and theft. Even if you’re not in a high-risk weather region, other emergencies, such as a burst water pipe or an overflowing sink, could potentially be covered in your insurance if the emergency wasn’t preventable.

“If you’re hamstrung between affording cover or going without, try shopping around as a first port of call. Canstar research shows switching from an average-priced policy to a top-rated one at a lower premium could save $766 in one year.

“Your renewal notice is a good prompt to shop around but keep in mind if you spot a good deal outside of this time, Canstar’s analysis shows 85 per cent of insurance providers don’t charge a fee for early cancellation, and for those that do, fees are typically just $30 and $40, a small cost compared to the potential to save hundreds on your annual premium.

“Other ways to save include paying your premium annually rather than monthly, with 41 per cent of providers offering up to a 21 per cent discount for paying for the year in one lump sum, or increasing your excess to reduce your annual premium, provided you have the funds to cover the higher excess if you need to make a claim.”

Compare Home Insurance