What Is An Average Homeowner Insurance Cost?

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What Is An Average Homeowner Insurance Cost?

What Is An Average Homeowner Insurance Cost? House Insurance Costs By Postcode NSW

Homeowners insurance costs an average of $1,820 a year, or about $152 a month, according to NerdWallet’s analysis. However, this is just a benchmark. Our sample policy was for a 40-year-old homeowner with good credit, $300,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible. The cost of your homeowner’s insurance will depend on your location, the size of your house and how much coverage you need. We’ve analyzed pricing data from more than 100 insurance companies to bring you the average homeowners insurance cost in every state and the largest U.S. cities. The purchase of homeowner’s insurance is an essential component in the process of protecting your most significant investment, which is your home. However, understanding the average homeowner insurance cost and the factors influencing it can be pivotal in making informed decisions regarding your coverage. In this article, we delve into the intricacies of homeowner insurance costs, shedding light on what influences them and how homeowners can navigate through them efficiently.

Factors Influencing Homeowner Insurance Costs:

Several factors contribute to determining the average cost of homeowner insurance. These factors vary from individual to individual and property to property. Here are some key determinants:

  • Location:

The geographical location of your property plays a pivotal role in determining insurance costs. Homes located in areas prone to natural disasters such as floods, earthquakes, or hurricanes typically incur higher premiums due to the increased risk of damage.

  • Property Value and Rebuilding Costs:

The value of your property and the cost to rebuild it in the event of a disaster are significant factors influencing insurance costs. Higher property values and reconstruction costs generally result in higher premiums.

  • Home Characteristics:

Specific characteristics of your home, such as its age, construction materials, and safety features, can impact insurance costs. Older homes or those constructed with materials prone to damage may have higher premiums.

  • Coverage Limits and Deductibles:

The level of coverage you choose and the deductibles you opt for directly affect your insurance costs. Higher coverage limits and lower deductibles typically result in higher premiums, while lower coverage limits and higher deductibles can lead to lower premiums.

  • Claims History:

Your past insurance claims history can also influence your homeowner insurance costs. Homes with a history of frequent claims may face higher premiums due to the perceived higher risk associated with insuring them.

Check out the average home insurance cost across Australia: House Insurance Costs By Postcode NSW

We gathered over 200 quotes from 16 different Australian insurers to work out the average home insurance costs from state to state with a building worth $500,000 and contents valued at $100,000. If you live in NSW, you can expect to pay a little bit more than other places. South Australia got lucky with the cheapest average cost for a home and contents policy. Based on this research, our average home insurance cost is $142.92 a month. You can use this as a guide when you’re comparing policies for your home, but remember costs will change based on your circumstances.

Average home insurance costs

Australian states

Building & contents insurance

Contents only insurance

Building only insurance





























Average costs




How home insurance is calculated

The cost of a home insurance policy can be calculated with the following things in mind.

  • The type of cover you want. Home and contents, building-only or contents insurance.
  • If you add on extra cover. Like portable contents insurance or accidental damage.
  • The location of your house. If you live in a bushfire, flood or cyclone-prone area, you might have to pay more.
  • The features of your house. The type of tiles on your roof and if you have an alarm system installed can impact the cost of your policy.
  • Your claims history. You can avoid an increased premium if you have a good claims history.

How do I buy home insurance?

  • Compare benefits and get a quote

Think about what’s important to you and what you want to protect.

  • Answer some questions online

The insurer will ask you these questions so they can assess the risk and the cost of your policy.

  • Make a choice, pay, and get covered

Don’t forget to read the PDS to make sure you’re covered for what you want.

What does a home insurance rate include?

Homeowners insurance policies typically include six standard types of coverage:

  • Dwelling. This pays for damage to your home from a covered event, such as a fire or windstorm.
  • Other structures. This covers structures on your property that aren’t attached to your house, such as a fence or shed.
  • Personal property. This pays for stolen or damaged belongings.
  • Loss of use, or additional living expenses coverage. This pays for you to stay elsewhere when your home is uninhabitable because of covered damage.
  • Personal liability. This pays if you accidentally injure someone or damage their property.
  • Medical payments. This covers medical bills for anyone injured on your property, no matter who’s at fault.

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Homeowners can navigate the insurance landscape more effectively if they have a better understanding of the factors that influence the costs of homeowner’s insurance and if they implement strategies to mitigate those factors. By comparing quotes, optimizing coverage, and taking proactive measures to reduce risks, homeowners can secure the necessary protection for their homes while potentially saving on insurance costs in the long run.