Cheap Home Insurance

Home insurance can be a vital product, offering financial protection for your house in the event of an unforeseen accident, loss, or theft. But nobody likes to feel like they’re paying more than they have to, so if you’re after some cheap home insurance, you’re not alone.

When comparing home insurance policies, it’s important to look for value for money rather than price. A cheap policy might not adequately cover you – though the same can be true for an expensive one. Luckily, there are some strategies you could take to get the best bang for your buck. 

Here are some of the top tips and tricks to know about cheap home insurance.

Home insurance providers look at a couple of different things when calculating the price of your premium. This includes factors such as the risk profile of your home, the amount of cover you need, relevant claims history, and compulsory charges like stamp duty and GST.

For example, your risk profile can be influenced by your dwelling’s:

• Age
  
• Location
  
• Value
  
• Elevation
  
• Condition.
  

Luckily, knowing what influences your premium can help you keep it down and make decisions about what kind and amount of home insurance coverage you may need.

Certain properties will need wider coverage to avoid underinsurance, which can affect the price. As a result, a specific policy may come out cheaper for one person than another. Before buying or moving into a new home, ensure it ticks the boxes with this handy home insurance checklist. Otherwise, you could be taking on a hefty amount of risk – and a hefty insurance premium to match.

Home insurance is broken up into three basic coverage categories. 

• Building insurance covers the physical structures on your property, like the house, unit, and any garden sheds you may own. By focusing on just the building, this type of insurance can be ideal for landlords.
  
• Contents insurance covers the removable belongings in your home, such as furniture, appliances, electronics, decor, and other valuables. By focusing on just the contents of your home, this type of insurance can be great for renters. 
  
• Combined building & contents insurance maximises coverage for both the physical property and your belongings, making it a fantastic option for homeowners. 
  

By comparing your needs to the different types of policies, you’re better placed to find great value home insurance.

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. In general, 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 preexisting damage or damage caused by poor maintenance (such as leaky pipes, black mould, and 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! Shop around to see if the quote you’re getting is competitive, and if you find something better, don’t be afraid to make the switch.

Comparing home insurance policies and quotes is key to finding the cheapest one for you. While not every policy will suit everyone’s needs, there are some good value ones worth checking out.

Get started by checking out some of the best value for money winners at our 2021 Mozo Experts Choice Home Insurance Awards. Because our expert judges looked at a range of factors besides price, you’ll still need to check if these providers would be cheapest for you. However, they’re excellent starting points if you’re hunting for competitive policies from exceptional providers. 

Some of the winning exceptional value providers include:

• BudgetDirect
  
• ING
  
• TIO
  
• Westpac
  
• RAC
  
• Virgin Money

Home insurance in general is subject to a few common exclusions, such as:

• Maintenance-related or renovation damage.
  
• Preexisting damage.
  
• Certain types of natural disasters, such as flooding caused by excess rainfall runoff or actions of the sea like coastal erosion. 
  
• Riots, civil unrest, and war. 
  
• Pet damage. 
  

However, cheap home insurance could exclude far more if it’s poor value. For instance, it may not give you adequate underinsurance protection, or the sub-limits on precious items might be far too low. Always check what’s included in a policy by having a good ol’ read of the product disclosure statement (PDS) – and watch out for these nine home insurance traps.

RELATED: 5 iconic movie characters who'd get home insurance claims rejected

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.

Who has the cheapest home insurance?

Unfortunately, no one provider has the cheapest coverage or policy for everyone. However, there are a few award-winners who have been noted by experts and fellow Aussies for providing excellent value. For more details, head over to our best home insurance hub and compare deals on offer.