Home and contents insurance costs are soaring, with new research revealing Australians are now paying hundreds of dollars more to protect their homes than they were a year ago.
Compare the Market data shows average quotes across the nation’s capital cities have surged by almost $374 in the year to June 2026, as inflation, extreme weather and rising rebuild costs drive premiums sharply higher.
The average indicative home and contents quote across Australia’s capital cities climbed from $2529.43 in June 2025 to $2903.36 in June 2026 – a jump of 14.78 per cent.
Sydney recorded the biggest dollar increase among the five capital cities assessed, with average quotes up $334.01 over the year.
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Adelaide was next, rising $324.68, followed by Melbourne at $321.11.
Brisbane and Perth were close behind, with increases of $310.62 and $308.71 respectively.
Compare the Market economic director David Koch said households were being hit by a combination of rising costs, major claims events and the way insurers price risk.
“The first is inflation – it’s driving up the cost of everything from materials to labour and transport,” he said.
Average home and contents insurance quotes – June 2026
“That all means it’s a lot more expensive to repair or rebuild a house in 2026.
“Big claims events are the second driver. Think back to those wild hailstorms that hit NSW and southeast Queensland last year – they drove $1.78 billion in claims on their own. Unfortunately, Australian storm season bites hard.
“But the third thing is how insurers set their prices. If you’re a customer you need to be asking, does my policy still offer me good value, or could I get a better deal elsewhere?”
Compare the Market Economic Director David Koch. Picture: Dylan Burns
Mr Koch said the latest figures should serve as a warning to households already grappling with cost-of-living pressure.
“Remember these numbers are just averages – in some cases premiums could be going up a lot more,” he said.
“We hear from people who have seen their renewal notice come through hundreds – sometimes thousands – of dollars dearer.
“Take my colleague Chris for example, his home and contents premium for a property in Brisbane’s west was up 146 per cent, and he hadn’t even made a claim. Of course, he didn’t accept it – he shopped around and found a cheaper deal. That’s what everyone should be doing this year.”
Surging construction costs, labour availability and the frequency of large claim events have contributed to home and content insurance price increases.
It’s not just home insurance piling pressure onto household budgets.
Compare the Market’s figures also show average car insurance quotes rose by $193.63 in the year to June, with Melbourne recording the biggest jump at $285.03.
That comes as Insurance Council of Australia reporting found a car is broken into every 42 minutes in Victoria, with the state’s total theft bill reaching $243 million – higher than all other states combined.
Mr Koch said motorists looking to trim their premium should start by checking whether their policy details still reflect their circumstances.
“Think of all your lifestyle changes over the past year – maybe you’ve moved house, you’re driving less, or you’re locking your car up in a garage – all of these can influence the premium you pay,” he said.
“And if you’ve been with the same insurer for a while, you could be missing out on the discounts available to new customers. A cheaper premium could be a simple switch away.”
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