Cheap Home Insurance

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

How are home insurance costs calculated?

A house with one side sunny and one side stormy.

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.

Different types of home insurance

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

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.

What makes home insurance cheap?

Collage of a woman juggling different coloured squares.

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.

How to find the cheapest home insurance

Collage of a woman searching for cheap home insurance on her phone.

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:

What isn’t covered with cheap home insurance

Collage of a hand dropping a question into a piggy bank.

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

Is cheap home insurance best for me?

Collage of a woman thinking about her budget.

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.

Collage of a woman leaping into her cheap home insurance search, trailing a rainbow.

FAQs

Can I make my home insurance cheaper?

Absolutely! Lowering your home’s risk profile can lower your home insurance premiums. For instance, you could opt to pay a higher excess, install some smart security sensors, or weatherproof your yard. How much money you save will depend on the policy, provider, and property, however, so make sure to compare home insurance quotes when looking for good value.

What makes home insurance expensive?

Insurance providers jack up prices to compensate for increased risk. If they see you or your home as a bad bet, they’ll charge you accordingly. For instance, if you live in a low-lying area prone to flooding or frequent bushfires, you’ll likely have to pay a higher premium. Similarly, if you live in a dangerous neighbourhood, have made frequent claims in the past, or live in a poorly maintained home, your bill will reflect the elevated risk. If you’d like to keep your home insurance relatively cheap, make sure you mitigate as much risk as possible.

Do home insurance costs vary by state?

Unfortunately, where you live matters a lot to home insurance providers. States like NSW, QLD, and the Northern Territory tend to incur higher premiums, although these premiums will also vary widely depending on which region you live in. Check with your local council if you’re unsure of the risks native to your area.

What types of home insurance are there?

There are three kinds of home insurance: building, contents, and combined building & contents insurance. Each covers different aspects of your property, whether it’s the building itself, the valuables within, or everything together. Contents insurance can be great for renters since you only pay to protect your valuables, while building and combined insurance are great options for homeowners and landlords.

Does property location affect home insurance?

Your property’s location affects your home insurance considerably. Elevation, geography, climate, proximity to water, and even the crime rates in your neighbourhood all inform what kind of dangers apply to your home and the likelihood of you having to file a claim. If your property is judged to be in a risky area, it may be harder to find a cheap home insurance policy that adequately covers it. (In fact, these ten places will be effectively uninsurable by 2030).

What type of home insurance is cheapest?

Home insurance quotes will vary between home and provider, so a quote may be cheaper for one person than it for another. However, opting for bare minimum coverage or “sum insured” insurance could generally get you lower prices. (Just consider whether bare minimum coverage is worth the money).

Compare home insurance policies - rates updated daily

Search promoted home insurance below. Advertiser disclosure. Important information on terms, conditions and sub-limits.
  • Home & Contents Insurance

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

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

* 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