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.

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.

The category to note is the Exceptional Value Home & Contents Insurance category, which highlights policies that are Ideal for homeowners seeking a balance between cost and extensive coverage.

Eager to explore these budget-friendly home insurance options? We've carefully selected notable policies from the 2024 Mozo Experts Choice Home Insurance Awards for you to check out.

Those weren’t the only exceptional value winners at this year's awards. If you’re looking for affordable car insurance policies in 2024, 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.

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.

When choosing home insurance, you'll generally have three options: building insurance, contents insurance, and combined home and contents insurance. Typically, contents insurance is the cheapest, followed by building insurance, with the combined option being the most expensive. Here’s how each option stacks up:

Keep in mind that costs vary based on things like where you live and how much coverage you need. Always check the product disclosure statement (PDS) to understand exactly what’s covered before you decide.

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.

To get a better handle on how to lower your home insurance premiums, it helps to understand what influences the price. Some factors are beyond your immediate control, while others offer opportunities to reduce costs.

Let’s start with the factors that are pretty much set in stone, and then move on to those you can tweak to lower your premium more easily.

Inherent factors affecting your premium:

These are the things you can’t really change, but they play a major role in your home insurance costs.

• Age of your home. Older homes usually cost more to insure because they come with higher risks—like ageing materials and outdated construction techniques.
• Location. Where you live matters a lot. Homes in areas with a history of natural disasters (like bushfires or floods) or higher crime rates often come with pricier premiums.
• Property value. Homes with a higher value cost more to insure, since they’d be more expensive to repair or rebuild if damaged.
• Flood risk and elevation. If your home is in a flood-prone area or has specific elevation risks, your premium might be higher due to the increased chance of water damage.
• General condition. Homes that are well-maintained usually score lower premiums, as insurers see them as less likely to lead to claims. Homes that need a lot of upkeep might be seen as a bigger risk.

Adjustable factors to lower your premium:

Here are the factors you have more control over—adjusting these can help lower your home insurance costs.

• Excess amount. Increasing your excess (the amount you pay out of pocket when you make a claim) can reduce your premium. Just make sure you’re comfortable covering that amount if something happens.
• Customised coverage. Tailoring your policy to only cover what you really need—like specific valuables or fewer add-ons—can save you money.
• Bundling policies. Some insurers offer discounts if you bundle your home and contents insurance, or combine home insurance with another type like car insurance.
• Home security. Adding extra security, like alarms or deadlocks, can lead to lower premiums by reducing the risk of theft or damage.
• Payment frequency. If you can afford to pay your premium annually instead of monthly, you could save, as many insurers charge more for spreading payments out.

Knowing what influences your premium—and what you can change—gives you more control over your home insurance costs. Ready to take action? Check out the next section for tips on finding affordable home insurance that suits your needs.

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.

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.

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.

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.

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.