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Cheap Home Insurance

A seesaw scale weighs up coins versus a model house. A metaphor for cheap home insurance.

How we identified the cheapest home insurance

Each year, our Mozo Experts Choice Home Insurance Awards spotlight the best value home insurance policies—meaning the cheapest options relative to similar options.

Let’s get straight to it. Here are a few of our standout winners for best value home and contents insurance.

Mozo award-winning cheap home insurance policies

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Important information on terms, conditions and sub-limits.
Important disclosures
Budget Direct - Home & Contents Insurance**
  • Multiple Mozo Experts Choice Award^ winner
  • Optional flood cover
  • 30% online discount off the first year’s premium (T&Cs apply)

You know Budget Direct is serious about value when it not only wins this award for home insurance but also earns the 2024 Mozo Experts Choice Value Insurance Provider of the Year award. This recognition covers its entire range, including car insurance, proving Budget Direct walks the walk on affordability. 

With features like new-for-old replacement and up to 12 months of temporary accommodation, this policy delivers great coverage. The 30% discount for buying online is just another reason to consider it if you're looking to protect your home and valuables without stretching your budget. Just keep in mind that landscaping, including trees and shrubs, isn’t covered.

Australia Post Home & Contents Insurance**
  • Temporary accommodation up to 24 months
  • Optional 30% underinsurance safety net
  • 10% discount for combined policies

Australia Post’s home and contents insurance offers solid, straightforward coverage with a few standout features that help set it apart. For example, the underinsurance safety net gives you confidence that you won’t be left short if your rebuild costs are higher than expected. The ability to secure long-term discounts for combined cover is another bonus, making this a smart choice for homeowners who want dependable protection without overpaying.

Just keep in mind, landscaping and plants aren’t covered, so if your garden matters, you’ll need to consider extra options.

QBE Home Cover - Buildings & Contents**
  • 10% for getting a quote and buying online
  • Optional 30% underinsurance safety net
  • 2024 Mozo Experts Choice Award winner

QBE offers a well-rounded home and contents insurance policy that delivers strong protection for both your home and valuables. Its standout feature is the 30% underinsurance safety net, ensuring you're not left short if rebuilding costs exceed your initial coverage. The policy also covers emergency repairs, helping you address urgent issues without delay. With a 10% discount for purchasing online, QBE provides competitive pricing without sacrificing coverage quality, which earned it a Mozo Experts Choice Award for Exceptional Quality.

Keep in mind, if you choose to pay in instalments, it may cost more, and adding extras like portable contents cover will increase your premium.

Virgin Money Home & Contents Insurance**
  • Easy policy management through the Virgin Insurance Hub
  • 10,000 Velocity Points available to new customers (T&Cs apply)
  • Up to 30% discount off the first year’s premium (T&Cs apply)
Find out more

Along with essential protection against fire, storms, and theft, the policy offers a range of flexible extras like flood and accidental damage cover, so you can tailor it to your needs. 

New customers can take advantage of up to 30% off in the first year when buying a combined home and contents policy online, plus the chance to earn 10,000 Velocity Points for policies purchased before 31 January 2025. Virgin’s easy online management tools add to the convenience.

Just note that paying monthly comes with an extra fee, and certain weather-related claims may not be covered if damage results from a lack of maintenance or design flaws.

Other cheap home insurance policies

Those weren’t the only exceptional value winners at this year's awards. If you’re looking for affordable car insurance policies in 2024, here are a few more worth investigating: 

AAMI Home Building & Contents Insurance
Coles Home Building & Contents Insurance
APIA Home & Contents Insurance
ING Home and Contents Insurance

If price isn’t a concern and you want to know the best overall policies, check out our lowdown on the best home insurance policies in Australia. And if you want to learn exactly how we chose the cheapest and best policies, you can check out our full methodology report.

For a full list of winners in all categories, head over to the Mozo Experts Choice Home Insurance Awards.

What is the cheapest home insurance level?

A diagram showing the difference between building, contents, and combined home insurance.

When choosing home insurance, you'll generally have three options: building insurance, contents insurance, and combined home and contents insurance. Typically, building insurance is the cheapest, followed by contents insurance, with the combined option being the most expensive. Here’s how each option stacks up:

Insurance Type
What it Covers
Cost Level
Ideal for
Building Insurance
Covers damage to the structure of your home
$
Homeowners who want to protect the property itself
Contents Insurance
Covers damage or loss of personal belongings
$$
Renters, or homeowners focused on covering valuables
Home & Contents Insurance
Covers both the home and personal belongings
$$$
Homeowners looking for full protection for house and possessions

Keep in mind that costs vary based on things like where you live and how much coverage you need. Always check the product disclosure statement (PDS) to understand exactly what’s covered before you decide.

What affects the cost of home insurance?

To get a better handle on how to lower your home insurance premiums, it helps to understand what influences the price. Some factors are beyond your immediate control, while others offer opportunities to reduce costs.

Let’s start with the factors that are pretty much set in stone, and then move on to those you can tweak to lower your premium more easily.

Inherent factors affecting your premium:

These are the things you can’t really change, but they play a major role in your home insurance costs.

  • Age of your home. Older homes usually cost more to insure because they come with higher risks—like ageing materials and outdated construction techniques.
  • Location. Where you live matters a lot. Homes in areas with a history of natural disasters (like bushfires or floods) or higher crime rates often come with pricier premiums.
  • Property value. Homes with a higher value cost more to insure, since they’d be more expensive to repair or rebuild if damaged.
  • Flood risk and elevation. If your home is in a flood-prone area or has specific elevation risks, your premium might be higher due to the increased chance of water damage.
  • General condition. Homes that are well-maintained usually score lower premiums, as insurers see them as less likely to lead to claims. Homes that need a lot of upkeep might be seen as a bigger risk.

Adjustable factors to lower your premium:

Here are the factors you have more control over—adjusting these can help lower your home insurance costs.

  • Excess amount. Increasing your excess (the amount you pay out of pocket when you make a claim) can reduce your premium. Just make sure you’re comfortable covering that amount if something happens.
  • Customised coverage. Tailoring your policy to only cover what you really need—like specific valuables or fewer add-ons—can save you money.
  • Bundling policies. Some insurers offer discounts if you bundle your home and contents insurance, or combine home insurance with another type like car insurance.
  • Home security. Adding extra security, like alarms or deadlocks, can lead to lower premiums by reducing the risk of theft or damage.
  • Payment frequency. If you can afford to pay your premium annually instead of monthly, you could save, as many insurers charge more for spreading payments out.

Knowing what influences your premium—and what you can change—gives you more control over your home insurance costs. Ready to take action? Check out the next section for tips on finding affordable home insurance that suits your needs.

How to find cheap home insurance

If you want to know how to find cheap home insurance, you’re in the right place. Home insurance premiums will vary depending on the insurance company and a variety of other factors. In general, though, there are a few ways to get cheaper home insurance and keep costs down.

  • Opt for a higher excess. An excess is an amount of money you agree to pay whenever filing an insurance claim. Generally, a higher excess means a cheaper home insurance premium. Opting for a higher excess can be a cost-effective strategy if you’re living in a relatively low-risk home, since you probably won’t have to file a claim anytime soon. (However, keep in mind you’ll have to pay that high excess when the worst happens).
  • Bundle discounts. Insurance companies often offer discounts for bundling policies with them, whether it’s purchasing a combined home & contents insurance policy or even taking out other kinds of insurance with them, such as life, pet or car insurance. Check what discounts are available and see if you can maximise savings that way.
  • Maintain your home. Home insurance doesn’t cover pre-existing damage or damage caused by poor maintenance (such as leaky pipes, black mould or shifting foundations). Stay on top of your landscaping and household care to give your claims the best chance of success, as well as keep your premiums low.
  • Invest in safety precautions. Enhancing the security of your home can lower your risk profile, which can sometimes make for cheaper home insurance premiums. Spring for some extra padlocks, smart sensors or weatherproofing. Your home (and wallet) may thank you.
  • Keep claims to a minimum. While it seems counterproductive, insurance providers often reward low-risk policy-holders with a ‘no claims discount’. So if you can pay for minor accidents out of pocket, it may be cheaper in the long-run than racking up an extensive claims history.
  • Compare policies on the market. Don’t just settle for the first good looking policy or auto-renew your current one! Use tools to compare cheap home insurance, ensuring that the quote you're getting is competitive. If you find something better, don’t be afraid to make the switch.

By following these strategies, you can find and maintain cheap insurance for your home, ensuring you’re always getting the best deal.

FAQs about cheap home insurance

Can I save on home insurance by undervaluing my home?

No, undervaluing your home is not a smart way to save. Doing so can result in underinsurance, where you're only paid a percentage of the total cost of damages, leaving you out of pocket for the rest. Worse still, if the insurer finds it was intentional, it could lead to your claim being denied altogether.

What is the cheapest home insurance in Australia?

We know we're hammering this point home, but finding the cheapest home insurance in Australia really does hinge on your personal situation. What's a bargain for some may not be as sweet for others. That said, there are a few insurers known for their competitive rates. Recognized in the Mozo Experts Choice Awards for their value, these include AAMI, Apia, Budget Direct, ING, Australia Post, QBE, Coles and Virgin Money.

These providers have earned a nod for offering good deals, but remember, the best savings often come from comparing policies and tailoring them to your needs. For more tips on how to find a policy that's both affordable and suitable, have a look at our ‘Saving on home insurance: tips and tricks’ section above. 

And for a deeper dive into why these insurers stand out, check out the Mozo Experts Choice Awards page here.

Is it cheaper to bundle home and contents insurance?

Yes, many insurers provide discounts for combining your building and contents insurance policies, resulting in lower premiums compared to purchasing each policy separately. However, the type and size of the discount can vary – it might be a smaller monthly payment or a one-off upfront discount on your first month’s premiums.

And while bundling house and contents insurance might offer savings, but it's key to check the specifics. Not all insurers offer bundling options, and even when they do, the deal you get might not always be the best for your particular needs. It's wise to use comparison tools or speak directly with various insurers to explore your options.

Is cheap home insurance suitable for senior citizens?

Cheap home insurance can be appropriate for senior citizens, particularly for those looking to balance their budgets. However, it's important for seniors to ensure that such policies cover all their specific needs. 

Many seniors have not only built up a lifetime of memories, but may have also collected a lifetime of valuable and/or sentimental keepsakes. There may be cases where your typical contents insurance may not cover you for high-ticket items, and that’s where ‘high value item insurance’ comes in. 

Many insurers will offer this as an add-on to their standard contents insurance policies, so if you’re a senior with family heirlooms or antiques, you may want to ensure that your cheap home insurance policy offers this additional protection.

Is cheap home insurance the best fit for me?

When making important financial decisions, it’s vital to seek consultation with a registered financial advisor and do as much research as possible. A cheap home insurance policy might be good for some people and not others, so take your needs into account when comparing policies.

For instance, a cheap home insurance policy might suit someone who:

  • Has a well-maintained dwelling.
  • Lives in a low-risk area.
  • Has a tight budget.

Ultimately, however, it’s up to you to decide which bells and whistles you need. The right home insurance policy will provide adequate coverage while fitting squarely within your budget.

Compare home insurance policies

Mozo may receive payment if you click products on our site. Mozo does not compare the entire market.
Last updated 30 October 2024Important disclosures
Important information on terms, conditions and sub-limits.
  • Home Cover - Buildings & Contents

    Main events covered
    • fire
      Fire
    • theft
      Theft
    • storm
      Storm
    • flood
      Flood
    Monthly payments
    cost extra
    Calendar icon
    Yes
    Underinsurance protection
    Underinsurance protection icon
    Optional ExtraUp To 30% Of Buildings Sum Insured, Applied Automatically For Eligible Policies
    New for old
    replacement
    Replacement icon
    Yes
    Details
  • Home & Contents Insurance

    Main events covered
    • fire
      Fire
    • theft
      Theft
    • storm
      Storm
    • flood
      Flood
      Optional Extra
    Monthly payments
    cost extra
    Calendar icon
    Yes
    Underinsurance protection
    Underinsurance protection icon
    Optional ExtraUp To 25% Of Building Sum Insured
    New for old
    replacement
    Replacement icon
    Yes
    Details
  • Home & Contents Insurance

    Main events covered
    • fire
      Fire
    • theft
      Theft
    • storm
      Storm
    • flood
      Flood
    Monthly payments
    cost extra
    Calendar icon
    Yes
    Underinsurance protection
    Underinsurance protection icon
    No
    New for old
    replacement
    Replacement icon
    Yes
  • Home & Contents Insurance

    Main events covered
    • fire
      Fire
    • theft
      Theft
    • storm
      Storm
    • flood
      Flood
    Monthly payments
    cost extra
    Calendar icon
    No
    Underinsurance protection
    Underinsurance protection icon
    No
    New for old
    replacement
    Replacement icon
    Yes
    Details
  • Home & Contents Insurance

    Main events covered
    • fire
      Fire
    • theft
      Theft
    • storm
      Storm
    • flood
      Flood
    Monthly payments
    cost extra
    Calendar icon
    Yes
    Underinsurance protection
    Underinsurance protection icon
    Optional ExtraUp To 30% Of Building Sum Insured
    New for old
    replacement
    Replacement icon
    Yes
    Details
Brad Buzzard
Brad Buzzard
RG146
Senior Money Writer

With RG146 in Generic Knowledge and Super, Brad excels in simplifying complex topics and analysing consumer insights. Featured in The Australian, Mumbrella and Asia Insurance Review, his work has influenced strategies for McDonald's, Unilever and more.


* Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.

^See information about the Mozo Experts Choice Home Insurance Awards