Owning a home is one of the biggest investments most Australians will ever make. To protect that investment, having the right home insurance policy is essential. Whether you’re a homeowner or a landlord, understanding what your policy covers and how to reduce costs can help you get the best value for your money.
While home insurance protects your property, other insurance types like car, health, travel, and life insurance protect other parts of your life.
What Does Home Insurance Cover in Australia?
Home insurance typically protects your property from damage caused by unexpected events. There are two main types of home insurance:
1. Building Insurance
Covers the structure of your home, including:
- Walls, roof, floors, and permanent fixtures
- Damage from fire, storms, floods (depending on policy)
- Vandalism and theft
- Water damage from burst pipes or leaking roofs
This is especially important if you have a mortgage — lenders usually require building insurance.
2. Contents Insurance
Covers personal belongings inside your home, such as:
- Furniture, electronics, and appliances
- Clothing and personal items
- Portable valuables like laptops and cameras (if specified)
You can choose to buy building and contents insurance separately or as a combined policy.
Some policies also offer optional add-ons like:
- Cover for outdoor structures (e.g., sheds, fences)
- Emergency accommodation if your home becomes uninhabitable
- Legal liability for injuries on your property
Landlord vs Homeowner Insurance: Key Differences
If you’re renting out your property, it’s important to understand that standard home insurance won’t cover you as a landlord.
| Feature | Homeowner Insurance | Landlord Insurance |
|---|---|---|
| Covers Owner-Occupied Property | Yes | No |
| Covers Rental Property | No | Yes |
| Loss of Rent Coverage | NO | Available |
| Tenant Damage Protection | NO | Optional |
| Contents of the Property | Owner’s belongings | Unless vacant |
Landlord insurance is specifically designed for rental properties and often includes extra protections like:
- Cover for rent default or tenant damage
- Public liability protection
- Optional legal expense coverage
If you’re planning to rent out your property, switching to a landlord policy is crucial to avoid claim rejections.
Top Home Insurance Providers in Australia (2025)
Here are some of the most trusted and popular home insurance companies in Australia:
1. NRMA Insurance
- Best For: Sydney-based homeowners and regional customers
- Strengths: Strong reputation, 24/7 claims support, flexible policy options
- Customer Rating: 4.5/5
2. AAMI
- Best For: Competitive pricing and easy online claims
- Strengths: Bundling discounts, free emergency repairs
- Customer Rating: 4.3/5
3. Allianz
- Best For: Customizable plans with premium features
- Strengths: High coverage limits, digital tools for policy management
- Customer Rating: 4.4/5
4. QBE Insurance
- Best For: Comprehensive natural disaster coverage
- Strengths: Clear policy terms, good customer service
- Customer Rating: 4.2/5
5. Budget Direct
- Best For: Cost-conscious homeowners
- Strengths: Affordable rates, simple process
- Customer Rating: 4.1/5
Before choosing a provider, always compare policies based on coverage, exclusions, excess amounts, and customer reviews.
Tips to Reduce Your Home Insurance Premium
Paying less for home insurance doesn’t mean sacrificing protection. Here are smart ways to cut costs without compromising coverage:
Install Security Systems
- Alarm systems, deadlocks, and CCTV can lower your risk profile and earn you discounts of up to 10–20%.
Bundle Policies
- Combine your car, health, and home insurance under one provider to save on premiums.
Increase Excess
- Opting for a higher excess amount lowers your monthly cost — just be sure you can afford to pay it if needed.
Shop Around Annually
- Prices change every year — use comparison websites like Compare the Market, Canstar, or Finder to find better deals.
Review Coverage Regularly
- Avoid over-insuring — update your contents list and adjust sums insured based on current values.
Avoid Claims for Minor Issues
- Making small claims can lead to future premium hikes — consider paying for minor damages yourself.
How Natural Disasters Affect Home Insurance Coverage
Australia is prone to several natural disasters, which can impact both the availability and cost of insurance.
Common Risks Include:
- Bushfires
- Floods
- Storms and cyclones
- Earthquakes (less common but possible)
Most standard home insurance policies cover bushfire and storm damage, but flood coverage may be excluded unless explicitly added or offered in high-risk areas.
| Risk | Typically Covered? | Notes |
|---|---|---|
| Bushfire | Yes | Standard in most policies |
| Storm / Hail | Yes | Includes roof and water damage |
| Flood | Often excluded | May require separate flood cover |
| Earthquake | Not standard | Can be added as an extra |
If you live in a high-risk area, expect higher premiums or stricter conditions. Some insurers may even refuse coverage unless you take preventive measures like installing bushfire shutters or storm-proof roofing.
Final Thoughts
Home insurance is a vital part of protecting your property and belongings against unexpected events. Whether you’re a homeowner or landlord, selecting the right policy involves understanding what’s covered, comparing providers like NRMA, AAMI, and Allianz, and using practical strategies to reduce costs.
By installing security systems, bundling policies, increasing excess, and reviewing your coverage annually, you can significantly lower your premium while maintaining strong protection.
Also, don’t forget to check how your policy handles natural disasters, especially if you live in a bushfire or flood-prone area.