Aussies fail to unpack home insurance: Households could save a whopping $1,551 a year

• Northern Territory ($4,759) followed by Queensland ($3,299) have the most expensive home and contents insurance on average
• Policy holders could save up to $1,551 a year on average, by comparing home and contents insurances policies and switching to a more competitive provider 
• Just over a half (56%) of Australians with home and contents insurances choose to cover their home for peace of mind 
• 21% of Australians with home and contents insurances have never reviewed their policy 
• For some (21%) home owners only have home and contents insurance as it was a compulsory requirement of their mortgage 

New research from financial comparison website Mozo has found that one-in-three Aussies only review home and contents insurance policies when they move, which could be a costly mistake. Mozo’s analysis found that on average, households could save a whopping $1,551 a year by comparing and switching to a more competitive policy. 

"There are not many people around at the moment who wouldn't want an extra $1500 in the household kitty. My advice is don't wait until you move to shop around, review your home insurance policy when it comes around for renewal,” says Claire Frawley, Personal Finance & Insurance Expert Mozo.

Peace of mind was the primary reason over half of policy holders (56%) took out home and contents insurance. A further 21% reported they insured their home to comply with their mortgage terms and conditions.  

“It's also a good idea to make sure that if you've made any recent additions to your property, that you include these as these items on your policy, so you are not left underinsured.”

As with property, location is one of the biggest factors that will contribute to the cost of home insurance policies. Northern Territory is the most expensive state with the average annual premium costing $4,759, followed by Queensland at $3,299.

Shockingly, Mozo research also found that 21% of people have never reviewed their home insurance policy, blindly renewing each year.

“When it comes to home insurance, loyalty doesn’t always pay off.  Before renewing your policy, it’s important to review and compare how much you are paying. If you do find you are overpaying and choose to switch providers, often you can negotiate for any no claims bonus to be transferred across to your new policy,” says Frawley

To help Australians navigate home and content insurance, Mozo’s experts compared 61 policies from 43 different providers for the Mozo Experts Choice Awards to determine which insurance providers offer exceptional value and outstanding quality Mozo recognised: 

• Budget Direct as Value Insurance Provider of the year 
• GIO as Quality Insurance Provider of the year  
• ING and QBE as Exceptional Value Home and Contents Insurance 

For further information on this year’s award winners, visit: Mozo Experts Choice Awards or check out Mozo’s home insurance comparison service. 

-ENDS-

Notes: Mozo commissioned a nationally representative survey of 1,775 Australians conducted by Researcify between August- September  2022. ​​Mozo analysed over five thousands of home and contents insurance quotes to determine the average difference between the least expensive and average premium quote for similar levels of policy coverage.