Average Home & Contents Insurance Costs by State (2026)
Canstar's 2026 research puts the national average for combined home and contents cover at $2,970 a year, but the range across states is enormous — driven mostly by weather risk, not property values.
Why the Gap Is So Wide
North Queensland and the Northern Territory pay roughly double the national average because of cyclone, flood and storm exposure. Extreme weather events accounted for $4.8 billion in insured costs across Australia in 2025 alone, and premiums nationally rose about 5.4% in 2026 on the back of it.
What Actually Drives Your Premium
- Your sum insured — the rebuild/replacement value you nominate
- Postcode-level risk for bushfire, flood, cyclone and storm surge
- Building materials and age (older homes and combustible cladding cost more to insure)
- Security features — deadlocks, alarms and monitored security can reduce premiums
- Your claims history and the excess you choose
The Potential Savings
Canstar found switching from a higher-priced to a lower-priced policy could save up to $865 a year at the national average — but always compare the sum insured and inclusions, not just the sticker price, since a cheaper policy with a lower payout cap can cost you far more at claim time.
This page is for educational purposes and isn't personalised financial advice. Premiums, terms and eligibility vary by insurer, state and individual circumstances — always check the Product Disclosure Statement (PDS) before buying.