Home Insurance Cost: How much is home and contents insurance?

Average home and contents insurance costs

To give you an idea of the potential cost of home insurance, Canstar Research has calculated the average annual home and contents insurance premiums across the country for policies on our database. The table shows the average costs for both home and contents insurance if purchased separately, as well as the average cost for combined home and contents policies.

Average insurance costs by state and territory

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Source: www.canstar.com.au – 05/01/2026. Premiums based on quotes obtained for Canstar’s Home and Contents Insurance Awards and Star Ratings (August 2025), for a range of addresses, property assumptions and building sum insured amounts. Premiums based on building sum insured amounts between $300,000 and $1,500,000 and a contents sum insured of $50,000. *North QLD is defined as the portion of Queensland north of, but not including, Rockhampton.

To put that into perspective, this means the average cost of a home and contents insurance policy is about $7.16 a day in New South Wales, $6.30 a day in Victoria and $8.67 a day in southern Queensland. Home and contents insurance in WA might cost you $6.09 per day.

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What determines the cost of home insurance?

Factors that increase the risk of damage or destruction to your home and contents—and therefore increase the likelihood of a payout—will typically increase the cost of your home insurance.

Here are some of the variables that insurers tend to look at when determining the cost of your home insurance policy:

• Whether you’re covering your home, contents or both

• How much you choose to cover your home and contents for (sum insured or total replacement cover)

• If you decide to add any optional types of cover, such as accidental damage, cover for portable items and motor burnout

• How much excess you choose

• Your claims history

• Where you live (for example, if you live in an area that’s prone to natural disasters or has a high crime rate)

• Characteristics of your home (e.g. the materials used to build your house, the age and condition of your roof etc.)

• The security features you have—for example, a home alarm system

Is the cost of home insurance going up?

Average home and contents insurance costs rose by $343 (14%) in 2025 compared to national averages the previous year. Home building and contents insurance both rose by $246 (11%) and $91 (21%) respectively.

Why is home insurance so expensive in Australia?

Home insurance costs continue to rise in Australia due to inflationary pressures and the impacts of global warming and increasing extreme weather events. The Insurance Council of Australia (ICA) says that extreme weather events accounted for $1.8 billion in insured costs in the first half of last year, with a large portion of those attributed to Ex-Tropical Cyclone Alfred.

How to save on your home insurance premiums

• Consider home insurance deals and discounts, such as buying your policy online or as a combined home and contents policy

• Consider lowering your excess. Your excess is the amount you pay towards each insurance claim you make on your policy. Generally, the higher your policy’s excess, the lower your premium will be. If you’re considering increasing your excess, make sure that you can afford to pay this amount in the event you need to make a claim

• Some providers may offer lower premiums if you install safety and security features such as home alarm systems and security screens

• Pay your insurance premiums annually rather than monthly

• Shop around and compare your options.

Canstar Research also found that you could save up to $766 on average by switching from a market average policy to one of Canstar’s 5-Star Rated policies.

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Source: www.canstar.com.au – 05/01/2026. Premiums based on quotes obtained for Canstar’s Home and Contents Insurance Awards and Star Ratings (August 2025), for a range of addresses, property assumptions and building sum insured amounts. Premiums based on building sum insured amounts between $300,000 and $1,500,000 and a contents sum insured of $50,000. *North QLD is defined as the portion of Queensland north of, but not including, Rockhampton.

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How do I pay for home insurance?

Premiums can be paid annually or in regular instalments, for example in monthly or fortnightly payments. It’s worth being aware that some providers may charge higher overall premiums if you choose to pay in instalments.

Direct debit could be an option you consider (if your provider offers it), as it may help you pay your premiums on time. If you miss a payment, this could void or cancel your home insurance policy. For example, if you don’t pay a monthly premium instalment within 14 days after the deadline, some providers say they may refuse to pay a claim. In addition, your insurance provider may cancel your policy altogether if an instalment is a month or more overdue.

Is home and contents insurance tax-deductible if I work from home?

According to the Australian Taxation Office (ATO), employees working from home generally can’t claim deductions for “occupancy expenses” like home insurance. However, the ATO says you may be able to claim occupancy expenses if you can show that the area of your home that you use for work is exclusively or almost exclusively used for work purposes.