Mozo guides

Cheap Home Insurance

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

Exploring cheap home insurance in Australia? This guide cuts through the complexity, helping you find a policy that’s both affordable and reliable. Whether you're trimming expenses or seeking essential coverage, we provide the key insights to help you compare home insurance policies effectively so you can get the best deal possible.

How we identified the cheapest home insurance?

The Mozo Experts Choice Home Insurance Awards^ annually celebrates the finest in home insurance, shining a spotlight on policies that merge affordability with comprehensive coverage. These awards are a guide for homeowners seeking the best insurance options that don't compromise on essential protection, while also maintaining a keen eye on budget-friendly choices.

  • Exceptional Value Home & Contents Insurance. Ideal for homeowners looking for a balance between cost and extensive coverage.
  • Car and Home Insurance Exceptional Value Insurer of the Year. Acknowledges an insurer's excellence in offering great value across both car and home insurance sectors.

Eager to explore these budget-friendly home insurance options? We've carefully selected notable policies from the 2023 Mozo Experts Choice Home Insurance Awards for you to check out.

Mozo award-winning cheap home insurance policies

Budget Direct - Home & Contents Insurance**
  • Multiple Mozo Experts Choice Award^ winner
  • Optional flood cover
  • 30% online discount (off the first year’s premium) for combined policy (T&Cs apply)

Why it won: Time and time again, the Mozo judges have been impressed with Budget Direct’s consistently low prices and solid cover limits. As well as being crowned Value Insurance Provider of the Year^ for the third year in a row, Budget Direct’s home & contents cover also scooped up a 2023 Mozo Experts Choice Award for Exceptional Value Home & Contents Insurance^. The award-winning policy combines building and contents cover and comes with a 30% discount off the first year’s premium when you purchase a combined policy online (T&Cs apply).

Just be aware that the policy does not cover landscaping costs such as the replacement of trees and shrubs in your garden, even if they’re damaged by an insured event.

Virgin Money Home and Contents Insurance**
  • 2023 Mozo Experts Choice Award for Exceptional Value^
  • Optional flood cover
  • 30% online discount (off the first year’s premium)
Find out more

Why it won: This is the fifth time Virgin Money has received a Mozo Experts Choice Award for Exceptional Value Home and Contents Insurance^. After analysing more than 5,000 customer quotes, Mozo’s research team found that Virgin Money’s insurance offering frequently came with some of the lowest prices. As well as offering value for money, Virgin Money also offers several perks to eligible new customers. For instance, a 30% online discount could be applied to the first year’s premium if you purchase an eligible combined home and contents insurance policy online (T&Cs apply).

Read your PDS really carefully before signing up, as there are plenty of exclusions and conditions typical to insurance policies. For example, loss or damage caused by weather will not be covered if it can be traced back to a design fault or lack of maintenance on your part.

Kogan Home and Contents Insurance**
  • Save up to 16% off new building and contents insurance (T&Cs apply)
  • Up to $30 million legal liability cover
  • Lifetime guarantee on home repairs made by approved repairer

Why it won: Kogan Comprehensive Home and Contents Insurance offers protection for a wide range of events, such as fire, theft, storm and flood at a great price according to our expert analysis. 

The policy includes flexible cover options, a lifetime guarantee on home repairs by approved repairers, and a $500 security upgrade post-burglary (T&Cs apply). Temporary accommodation costs are covered for up to two years if your home is unlivable after an insured event. Policyholders also receive a $10 Kogan.com credit and up to 16% off their first year's premiums for online applications (T&Cs apply). 

Be aware that upgrades are needed for accidental damage or portable contents cover, and starting a home business might void the policy.

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 2023, here are a few more worth investigating:

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 cheap home insurance?

Collage of hands holding differently coloured shapes, representing the many factors that go into pricing home insurance.

This might seem like an obvious question, but when you dig a little deeper it’s clear that there’s more to cheap home insurance than merely costing less than others. It’s mostly about finding the right balance between affordability and adequate protection.

A cheap home insurance policy will typically cover essential risks like fire, theft and certain natural disasters - but more importantly, it needs to cover what you need it to cover without leaving significant gaps.

Finding cheap insurance for your home means doing thorough research and understanding what different policies offer.

The rest of this guide will explore how to find home insurance for cheap, and how to make an informed choice without sacrificing essential coverage.

Different types of home insurance

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

Before going into how to save on your home insurance, here’s a quick primare on the three basic categories of coverage:

  • 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. 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 affects the cost of home insurance?

Woman shrugs against yellow background, cuz she doesn't know what's covered by 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. Older homes may face higher premiums due to potential risks associated with ageing materials and outdated construction.
  • Location. Properties in areas prone to natural disasters or high crime rates might incur higher premiums.
  • Value. More expensive homes typically cost more to insure because they can be more costly to repair or rebuild.
  • Elevation. Homes in flood-prone areas or with specific elevation features may have different insurance requirements.
  • Condition. Well-maintained homes are often seen as less risky and can help you obtain cheap house insurance rates.

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. Paying attention to these details can guide you in finding cheap building insurance and cheap contents insurance that adequately covers your property without overburdening your budget.

Comparing cheap home and contents insurance

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

Selecting the right cheap home and contents insurance is about more than just finding a low price; it's about comparing what you get for your money. Here's a guide to help you weigh your options effectively:

  • Evaluate coverage vs. cost. Compare the coverage details against the cost among different policies. The goal is to identify the cheapest home and contents insurance that offers substantial protection for common risks.
  • Understand exclusions and limits. As you compare, note the differences in what is and isn't covered. Cheaper policies may have more exclusions, so it’s crucial to ensure that they align with your risk tolerance and coverage needs.
  • Compare premium costs. Assess the premiums of various policies side by side. Remember, the cheapest option might not always be the best value, so balance the cost with the coverage quality.
  • Excess amounts. Check how different policies handle excess. A higher excess might lower your premiums, but it’s important to compare how this trade-off affects the overall value of each policy.
  • Check reviews and reputation. Use customer reviews and company reputations as a comparison tool. Insurers with positive feedback, especially for cheap insurance home options, are often more reliable.
  • Consider additional benefits. Some policies might offer extra perks at no additional cost. Include these in your comparison to see which policy offers more value.
  • Policy flexibility. Look for policies that allow you to adjust coverages or premiums. Flexible policies can be more cost-effective in the long run.
  • Review the claim process. Compare how different insurers handle claims. A simpler and more efficient process can be a major advantage, especially for budget policies.

By carefully comparing these aspects, you can find a cheap house and contents insurance policy that not only fits your budget but also provides the right level of protection for your home.

Saving on home insurance: tips and tricks

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

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.

What isn’t covered by cheap home insurance?

A house with one side sunny and one side stormy.

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

  • Maintenance-related or renovation damage.
  • Pre-existing 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. 

Finding a home insurance policy that's both budget-friendly and reliable is definitely possible. But, it's wise not to let price be the only deciding factor. If you go for a policy just because it's cheap, you might end up with less coverage than you really need. 

A good move is to take a bit of time to dive into the product disclosure statement (PDS). It's a straightforward way to make sure you're not missing out on important coverage, helping you dodge those sneaky home insurance traps.

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.

Watch-outs when choosing cheap home insurance

Looking for budget-friendly home insurance? It's a smart choice, but you need to be vigilant about the details. Affordable coverage doesn't have to mean compromising on essentials. Here are some crucial watch-outs to ensure you're making a wise decision:

  • Beware of inadequate coverage. While lower prices may be enticing, be cautious about what your policy actually covers. Don't risk missing out on vital protection.
  • Guard against underinsurance. Ensure your policy adequately covers the full value of your home. Avoid unpleasant surprises when filing substantial claims.
  • Protect your valuables. If you have valuable items, confirm they receive ample coverage within your policy.
  • Understand excess costs. Get clarity on the excess amount you'll need to pay when making a claim. Cheaper policies may come with higher excess payments.
  • Navigate the claim process. Investigate how the claims process works with different policies. Choose one that offers seamless support when you need it most.
  • Uncover the extras. Some policies include additional benefits. Explore what's included and what's not in your chosen policy.
  • Read the fine print. Scrutinise what's excluded from your policy coverage. Mastery of your policy details is essential.

Choosing affordable home insurance can be a savvy move, provided you keep an eye on these watch-outs. It's all about securing the necessary coverage without straining your budget.

What to look for in a cheap home insurance policy

It’s important to understand that policies exist along a spectrum. There isn't always a clear distinction between ‘cheap’ and ‘standard’ home and/or contents insurance policies. Some budget-friendly options can provide comprehensive coverage, while more expensive policies may not meet your specific needs. 

In general though, many cheap policies will economise by removing all the bells and whistles. Here are some ways that cheap policies (even the good ones) might differ from something more substantial:

  • The excess. Cheaper policies may come with a higher excess, meaning you'll need to cover a larger portion of the claim cost out of pocket.
  • The claims process. Some budget-friendly policies may have a streamlined, fully online claims process, which can be convenient for tech-savvy homeowners but may not suit everyone's preferences.
  • Limited extras. Affordable options often prioritise essential coverage, potentially excluding extras like accidental damage protection, legal assistance or high-value item protection.
  • Geographical limitations. While not a strict rule, some budget-friendly policies may have geographic restrictions, possibly limiting availability to certain low-risk areas.
  • Replacement value. Cheaper policies might offer actual cash value coverage rather than full replacement cost coverage. Which means if your 2-year old TV is damaged, they’ll only pay you what a 2-year-old unit is worth.

By recognising these considerations across the spectrum of home insurance policies, you can make an informed decision that balances affordability with coverage, ensuring your home and possessions are adequately protected.

FAQs about cheap home insurance

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. For more ways to make your home insurance cheaper, check out the ‘tips’ section above.

Does home insurance cost vary by state in Australia?

Yes, the cost of home insurance can vary significantly from state to state and even from town to town. It’s all about the specific risk profile of the location in question. Insurers will factor in weather patterns, crime rates and even construction costs, among others.

For instance:

  • In New South Wales, especially around Sydney, you might find insurance a bit pricier. It's a mix of those higher property values and the occasional storm or bushfire that bumps up the cost.
  • Head up to Queensland and you're looking at a different picture. With cyclones and floods being more common, insurers often set their premiums higher to match the risk.
  • Over in Melbourne, it's the ever-changing weather and the hustle and bustle of city life that can influence what you pay for insurance.
  • And then there's Perth, a bit out on its own with unique environmental factors, which can lead to a different approach in insurance pricing.

When it comes to home insurance in Australia, it really pays to do a bit of digging. Whether you're in NSW, QLD, Melbourne, Sydney or Perth, getting a few quotes and comparing prices in your neck of the woods is a smart move.

Does the location of my property affect home insurance costs?

For sure, where your house sits on the map makes a big difference in your home insurance costs. It's not just about your city or suburb; the exact spot where your home is can change things. Think about how close you are to the ocean (hello, storm surges) or if you're in an area that's more likely to see bushfires. These are big deals for insurance companies.

Then there's elevation – if your house is perched up high, you might not worry as much about flooding compared to a place that's lower down. And how quickly can emergency services get to you? If you're out in a more remote spot, it could take longer for help to arrive, and insurers keep this in mind.

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?

When it comes to finding the cheapest home insurance, it's not as straightforward as picking a specific 'type' of policy. The cost of home insurance depends on a variety of factors unique to each homeowner and property. These can include the location of your home, its size, age, construction materials and even your personal claims history.

However, if you're looking to minimise costs, consider policies that offer essential coverage without the extras. This means looking for a policy that covers the basics – like structural damage and some level of contents insurance – without additional features you might not need. While this approach can reduce your premiums, it's important to weigh up whether the savings are worth it, considering the potential risk of being underinsured.

Remember, the cheapest option isn't always the best choice in the long run. It's about finding the right balance between adequate coverage and affordability. Therefore, it's always a good idea to compare different policies and understand exactly what's covered under each option.

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, Kogan Insurance, RACV, Suncorp Insurance, TIO 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.

Why is Budget Direct home insurance so cheap?

Budget Direct's home insurance is easy on the budget because they've got a knack for keeping things simple and efficient. They focus on online services, which cuts down on traditional office costs, and they let you customise your coverage so that you're not paying for extras you don't need. 

However, it's worth noting that ‘cheap’ doesn't always mean it's the right fit for everyone. Your needs are unique, and it's a smart move to compare different options. There are other cheap options out there, so taking a bit of time to explore can help you find the insurance that fits your circumstances.

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.

How does home security affect insurance premiums?

Home security can significantly influence insurance premiums, often leading to reductions in costs. That’s because insurance companies calculate premiums based on risk. A well-secured home is less likely to experience break-ins or damage, which in turn lowers the risk for the insurer.

Specific security enhancements that may lead to discounts on your insurance premiums include:

  • CCTV Cameras 
  • Alarm Systems
  • Deadbolts 
  • Smoke Detectors

Additionally, smart home gadgets such as leak detectors, smart locks and automated lighting systems are starting to catch the eye of insurers. 

In fact, some forward-thinking insurers are even providing customers with smart-home tech as an incentive to join. 

Whether you choose a traditional insurer or one embracing modern tech, it's crucial to discuss with them how bolstering your home security might impact your insurance premiums.

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.

How often should I review my home insurance?

It's a good practice to review your home insurance policy annually to make sure it remains a good fit for your current situation. Life means change, and it's important to ensure that your coverage aligns with your evolving needs. Reasons you may choose to review more often include:

  • Major life events like marriage, having children, or downsizing.
  • Making substantial home upgrades or acquiring valuable items.
  • Noticing shifts in local real estate or construction costs.

Regularly reviewing your coverage also provides an opportunity to compare insurance options, helping you avoid overpaying due to the ‘loyalty tax’ or rate increases. It's a smart financial move that keeps you both well-insured and cost-conscious.

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
      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 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
    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
    Yes
    Underinsurance protection
    Underinsurance protection icon
    Optional ExtraUp To 30% 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
      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
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.

Evlin DuBose
Evlin DuBose
RG146
Senior Money Writer

Evlin, RG146 Generic Knowledge certified and a UTS Communications graduate, is a leading voice in finance news. As Mozo's go-to writer for RBA and interest rates, her work regularly features in Google's Top Stories and major publications like News.com.au.

* 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