Australia’s best home insurance July 2022

Friends smiling in their insured home.

Plugging in your heater this winter? Every season brings its unique little spark, so now’s a fantastic time to review your safety plan and make sure you’re getting the best value home insurance. But besides reading the terms and conditions over a warm cuppa, how do you go about choosing a policy that ticks all the right boxes?

When it comes to choosing the best home insurance for you, it's important to note that no single policy will work for everyone. For example, flood cover will likely be a top priority for someone who lives in a valley or near a lake, but not for someone on a mountain. (Flood cover can differ between renters and homeowners, too). Alternatively, a generous amount of theft cover would suit someone with a rare collection of antique ceramic pugs. And you definitely want a simple claims process!

Ultimately, the best home insurance policy for you will depend on where you live and what you need. There's even a lot of unpack when it comes to cheap home insurance, as well. To help you in your search, we’ve rounded up a number of home insurance policies from some of Australia’s new and well-known insurance providers. These include plans that have received Mozo awards for value and quality, plus others that we think offer something unique.

Luckily, Mozo’s research team has reviewed home and contents insurance policies, from basic cover to additional benefits, to compare quality and value – totalling to more than 60 separate policies in Australia. Not your average beach read! The best finds of the lot have been given Mozo Expert Choice Awards^.

Here’s our summary of the best home insurance policies.

Best home insurance July 2022

Expert recommendations: Mozo Experts Choice Award-winning best home insurance policies

Graphic of Mozo Experts Choice Awards for Home Insurance.

Value Insurance Provider of the Year

Budget Direct Home and Contents Insurance*
  • Multiple Mozo Experts Choice Award^ winner
  • Optional flood cover
  • 30% online discount (off first year’s premium)

Why it won: Time and time again, the Mozo judges have been impressed with Budget Direct’s consistently low prices and solid cover limits. As well as being named Value Insurance Provider of the Year^ for 2021, Budget Direct’s home and contents cover also scooped up a Mozo Experts Choice Award for Exceptional Value Home and Contents Insurance^. The award-winning policy combines both home building and contents insurance and comes with a 30% discount off the first year’s premium, when you purchase online.

Best Quality Home Insurance

NRMA Home Plus Buildings & Contents Insurance*
  • Multiple Mozo Experts Choice Award^ winner
  • 25% safety net for extra rebuilding costs
  • Accidental damage included as standard
Find out more

Why it won: Crowned Mozo’s Quality Insurance Provider of the Year^ 2021, NRMA’s home insurance offerings have consistently impressed our experts for the past five years. The insurance company, which has been providing cover for Aussies for a century, received awards across all of the Exceptional Quality categories. Its Home Plus Building and Contents Insurance bagged a 2021 Mozo Experts Choice Award for Exceptional Quality Home and Contents Insurance^. Some perks of the policy include a 25% safety net in case rebuild costs are more than expected and automatic cover for accidental damage.

Best Value Home Insurance

Virgin Money Home and Contents Insurance*
  • 2021 Mozo Experts Choice Award for Exceptional Value^
  • Optional flood cover
  • 30% online discount (off first year’s premium)
Find out more

Why it won: This is the third time Virgin Money has received the Mozo Experts Choice Award for Exceptional Value Home and Contents Insurance^. After gathering more than 15,000 customer quotes, Mozo’s research team found that Virgin Money’s insurance offering consistently came with some of the lowest prices. As well as offering value for money, Virgin Money also offers a number of perks to eligible new customers. There’s a 30% online discount off the first year’s premium if you purchase an eligible combined home and contents insurance policy online, and if you purchase before 4 July 2022, you could earn up to 10,000 Velocity Points (T&Cs apply).

* Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.

^See information about the Mozo Experts Choice Home Insurance Awards

Customer favourites: Best home insurance from Mozo People’s Choice Awards

Graphic of Mozo's People's Choice Award badge.

The Mozo People’s Choice Awards are not judged by data analysts and professional researchers. Instead, the winners of these awards are decided by you, the actual customer.

For this year’s awards, nearly 2,260 Aussies rated home insurance providers on their customer service and satisfaction, the sign up experience, and for insurance, what the claims process was like.

Here is a selection of home insurance policies from providers rated highly for their customer service.

RAC Home & Contents Insurance*
  • Flood cover included as a standard
  • Option to increase limits for valuable items (conditions apply)
  • $70 discount when if you purchase online
Find out more

What you need to know: An astonishing winner in every single category for the 2022 Mozo People’s Choice Home Insurance Awards, RAC stands apart in the eyes of Australians. Not only was the Aussie provider rated highly for its outstanding Customer Service, Satisfaction, and Sign-Up experience, but survey respondents also voted them as ‘Highly Trusted’ and ‘Most Recommended’. Cover includes a host of eligible events, including bushfires, earthquakes, floods, and storms. As an optional extra, you can also increase the limits on specific items in your home which have higher values than standard cover limits (like an expensive device or work of art), with a limit of $2000 per item or $5000 in total. Sign up online and save $70 on your first year of coverage (T&Cs apply).

RACQ Home & Contents Insurance*
  • Flood cover included as standard
  • Optional pet cover (conditions apply)
  • $75 discount when you purchase online
Find out more

What you need to know: Impressively, Queensland based insurance provider RACQ received a trophy in nearly every single category for the 2022 Mozo People’s Choice Home Insurance Awards, including Customer Service Experience, Customer Satisfaction, and Claims Experience. It was also named a ‘Highly Trusted’ and ‘Most Recommended’ provider. The RACQ combined Home and Contents Insurance policy offers cover for damage caused by extreme weather events such as flooding and storms, as well as fire and theft. Up to $750 in eligible pet cover is also available as an optional extra if they’re injured by a household accident, although it should be noted that this does not include cover for elective, routine, or preventative care. Be sure to read the fine print as more terms and conditions may apply. The policy also comes with a $75 discount when you purchase online in full (excludes pay later option).

Youi Home and Contents Insurance*
  • Flood cover included as standard
  • Cover for fire, theft and storms
  • Cover for counselling services after a claim

What you need to know: A highly rated standout for its Excellent Customer Service at the 2022 Mozo People’s Choices Awards, Aussie insurance provider Youi must be doing something right. Youi’s combined Home and Contents Insurance policy includes flood, fire, theft, and storm cover. Plus, if you do need to make a claim after a traumatic event, the policy also includes up to $1,500 worth of cover for counselling services per household member. Up to $1000 pet cover is also available as an optional extra, going toward vet fees if your cat or dog is injured due to an eligible household accident.

* Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.

^See information about the Mozo Experts Choice Home Insurance Awards

Editor’s pick of the month: Best home insurance deals on Mozo in July

Woman in front of house smiling with 'Mozo Editor's Pick' written over the top of image.

Want to know what home insurance providers are offering something unique this month? Check out our editor’s pick of home insurance deals available in Australia this November. These options are offered by insurance companies that we think are a little different. Visit our home insurance hub for a longer list of policies available.

Earn Qantas Points

Qantas Home and Contents Insurance*
  • Earn up to 20,000 Qantas points (T&Cs)
  • Covers up to $750 mortgage discharge administration fees (T&Cs)
  • 15% combined policy discount

Key details: Qantas soars above the crowd with this competitive home and contents insurance policy. The most exciting features are all the opportunities for Qantas points: if you join or switch, you could earn 1 point for every $1 spent on your premium, up to 20,000 points (min. spend $1,550). Points will be awarded once you’ve had your new policy for at least 60 days. If you download the Qantas Wellbeing App, you could also earn up to 2,600 points a year through meeting health goals, answering quizzes, and performing safety checks around your home, like cleaning the gutters and testing your smoke alarm. Coverage is available for a range of insurable events, from storm and lightning damage (flood cover optional), fire damage, theft, and malicious damage. As a bonus, a 15% discount applies when you take out a new combined policy.

Focus on accident prevention

Honey Home and Contents Insurance*
  • Includes smart sensors to help avoid mishaps
  • Up to 8% discount each year for using smart sensors
  • Flood cover included as standard

Key details: Our top pick this month is the combined policy from tech-savvy provider, Honey. As a tech-led company focused on accident prevention, Honey provides customers with smart home sensors valued at around $250. The sensors can help alert customers to mishaps such as fires, water damage and theft in the home. Plus, by using them, you can get up to an 8% discount on your premium each year! Just make sure you activate your smart sensors within 14 days of receiving them and keep them active throughout the year. Besides providing smart tech, Honey’s policy includes flood cover as standard as well as cover for other events such as damage caused by an animal, storms and theft. Remember to read the PDS for precise cover limits and exclusions, before signing on the dotted line.

Fast claims processing

Huddle Everyday Comprehensive Home and Contents Insurance*
  • 24/7 claims processing
  • Flexible excess
  • Environmental benefits

Key details: A top notch claims processing app is nothing short of what we expect from a fintech such as Huddle. With Huddle’s Zap app claims can be lodged 24/7. The app itself has been programmed to approve certain simple claims, so in some instances you could even receive a resolution within minutes! The combined Home and Contents Insurance policy itself comes with a flexible excess to suit your budget. Insured events include flooding, storms, theft and fire. Something a little different that Huddle offers is an ‘environmental benefit.’ This includes up to $5,000 worth of cover that can be put towards installing environmental improvements to your home, such as solar panels, after an event where your home is deemed a total loss and needs to be rebuilt. Customers who purchase a new combined policy online may be able to get a discount of up to 20% (T&Cs apply).

Get a discount on groceries

Woolworths Comprehensive Cover Building and Contents Insurance*
  • 10% discount on your Woolies shop once a month
  • Cover for water damage
  • Up to 20% discount off first year’s premium (conditions apply)

Key details: Among the perks that come with this combined Building and Contents Insurance policy is a monthly discount on groceries. It wouldn’t be Woolies without some sort of sustenance involved. Eligible policyholders with an Everyday Rewards card will receive 10% off their Woolworths’ grocery shop, once a month. New insurance customers who purchase a combined Building and Contents Insurance policy online, might also be able to bag a 20% discount off their first year’s premium. Besides these perks, the policy itself includes cover for water damage, theft, storm damage and more. Other highlights include 24/7 emergency claims assistance and flexible cover to match your budget.

* Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.

^See information about the Mozo Experts Choice Home Insurance Awards

Most common FAQs about home insurance

Why do you need home insurance?

Home insurance is a fantastic way to protect yourself financially in case of accidental or malicious damage, loss, or theft to your property and/or belongings. While it isn’t compulsory to have a policy in place, some mortgage lenders might require you to have one to lessen your perceived risk as a borrower.

What does home insurance cover?

What home insurance covers will vary from policy to policy. Generally though, home building insurance provides cover for your actual property, while contents insurance is designed to protect the belongings inside it. These can be purchased together or separately.

Home insurance often covers events such as fire, theft, storms, flooding, lightning, earthquakes, and malicious damage – although not every policy will provide insurance for all these events. Some may only offer cover for certain things, or including events such as flood damage as an optional extra. Carefully review the product disclosure statement (PDS) before purchasing, as this will tell you exactly what is and what is not covered with a specific insurance plan.

What’s the best way to save on home insurance?

While there’s nothing wrong with searching for cheaper cover, it is worth remembering that insurance is designed to provide financial support should something go awry. If a policy doesn’t provide adequate cover, you could be left severely out of pocket in the event of a natural disaster or emergency.

That said, there are a few ways you can try to lower your annual premium. One of the best ways to save on home insurance is to make sure you get all the discounts you can. For instance, a number of providers offer a discount for combining home and contents insurance. This is called a multi-policy discount – you may even be able to get more money off by getting car insurance from the same provider, as well. 

Other things that could make your insurance cheaper include opting for a higher excess or adding extra safety features to your home. Keep in mind that a higher excess means you will have to pay more come claim time, so adding extra safety features, such as security locks or cameras, could reduce the chance of you being burgled. Ergo: make it less likely you will have to make a claim.

What’s the best way to work out how much to insure my home for?

Generally speaking, the amount you insure your home for should be enough to pay for a full rebuild, should it be completely destroyed. That said, obtaining an accurate estimate for the cost to rebuild can be tricky. So as to not put all your eggs in one basket, you might think about getting an estimate from a few different sources. That way you can cross reference what you find and see if the results differ wildly.

CoreLogic has a Rebuild Cost Calculator designed to help estimate how much insurance a specific property might need. Home valuation experts are another option. You can use the Australian Property Institute’s “find a property professional” search tool to find a certified residential property valuation expert near you. Alternatively, a quick internet search may also bring up valuation experts in your area.

What is underinsurance?

Underinsurance is when a property is insured for less than it would actually cost to rebuild it. So for example, if a property is insured for $400,000, but it turns out that the rebuild costs are actually over $500,000 - the homeowner is going to be left out of pocket. Unless the insurance customer has an underinsurance safety net with their policy, the insurance company will not pay more than $400,000 towards the rebuild costs.

Check out Mozo’s guide to underinsurance to read more about what it is and how you can avoid your home being underinsured.

What happens if I don’t have home insurance?

If you don’t have home insurance, any repairs your property needs will have to be paid for with your own money. The main point of home insurance is to provide financial support to individuals in the unfortunate event that their home is damaged or made uninhabitable. Costs stack up fast – especially in the event of a flood or bushfire. 

In worst case scenarios, some homes even need complete rebuilding after an extreme weather event. In these instances, bills for construction work can climb over $100,000. Not many individuals will have that much money stashed away in a savings fund. Of course even with home insurance, there will often still be at least a small amount to pay (such as an excess). However, home insurance can help you recover without taking as big a hit to your finances.

What is a home insurance excess?

The excess is the amount you will be expected to pay before the insurance company steps in. For example, say someone has a $400 excess with their home insurance. The insurance company will most likely not contribute towards a $300 bill, but will help out with a $1,000 bill (if the claim is accepted, of course). In the second scenario, the customer would pay $400 and the insurance company would pay $600. 

What your excess is will depend on a number of factors. These include the policy you sign up to and whether or not the insurance company allows flexibility in choosing an excess. A high excess will usually equal a lower insurance premium, while a low excess will often lead to a more expensive premium. 

However, come claim time you will have to pay more with a high excess and less with a low excess. So depending on the likelihood of you having to file a claim, there are different advantages to having a higher or lower excess.

Where can I find the best home insurance?

No one home insurance policy can be called the best. However, some may be more suited to your circumstances than others. As discussed earlier on, a policy that includes flood cover as standard may be appealing to someone who lives in a valley or near a river, while someone whose home sits near bushland may be more concerned about bushfire cover.

To pick the best home insurance for you, you will first have to decide what you need from a policy. Are you worried about your home being burgled? Do extreme weather events pose a threat where you live? Another thing to consider is budget. If money is tight, you may be after a no fuss policy that covers the basics. Or, if your financial situation is comfortable, you may want a comprehensive home insurance plan with all the bells and whistles attached.

Whatever your situation, you can start reviewing policies at Mozo’s compare home insurance hub. Here, we give a snapshot of individual home insurance policies available in Australia right now.

Is home insurance compulsory in Australia?

While there’s no official requirement for homes to be insured in Australia, many mortgage lenders may require you to have a home insurance policy in place before approving your home loan. This is because depending on the policy, home insurance (whether building, contents, or combined building & contents) could offer significant financial protection from unforeseen circumstances. Even if it’s not federally mandated, it’s still a worthwhile investment to consider.