Home insurance in the Australian Capital Territory (ACT)

Compare the Market customers in the ACT received an average premium quote of $1,793 per year for combined home and contents insurance. The average annual premium quotes were $1,564 for home building insurance and $387 for contents insurance.²

While these figures provide a useful guide, your premium could be higher or lower depending on where you live and the type of property you’re insuring. Some suburbs in Gungahlin and Woden Valley may have relatively higher home insurance premiums due to factors such as their proximity to bushland and nature reserves.

Because premiums can differ considerably from one property to another, it’s important to compare policies before you buy. Compare the Market can help you compare a range of policies side by side to find cover that suits your needs and budget.

Your property’s location and risk profile, along with factors such as your sum insured, level of cover and excess, can all affect your premium.

For example, flood zone classifications can affect whether flood cover is available and how much it costs, while a property’s Bushfire Attack Level rating may influence both premiums and cover options. Some of the main factors that can affect the cost of home and contents insurance in the ACT include:

Bushfire risk

Canberra has a long history of severe bushfires, including the devastating 2003 firestorm and the 2020 Orroral Valley fire, which came close to the suburbs of Banks and Conder in Tuggeranong. Properties located near bushland, nature reserves or grassland may be considered at greater risk of bushfire damage. As a result, insurers may consider factors such as a property’s location and Bushfire Attack Level (BAL) rating when determining premiums and cover availability. You can check the ACTmapi website to see whether your property is located within a Bushfire Prone Area. Homes in these areas may be subject to additional bushfire construction requirements, which can increase rebuilding costs and insurance premiums.

Flood risk

Compared to many other Australian cities, Canberra generally faces a lower risk of property damage from flooding due to its city planning. However, no area is completely immune to flood events. Homes located near waterways such as the Molonglo River, the Murrumbidgee River and local creek systems may face a higher flood risk than other parts of the ACT. Before taking out a policy, find out whether flood cover is included, optional or excluded.

Severe storm and hail exposure

Severe storms and hail events are a risk in the ACT, including the major hailstorm that affected Canberra in 2020. Homes in areas more exposed to strong winds, heavy rain, hail and lightning may face a higher risk of property damage, which can influence insurance premiums.

Your chosen level of cover

Your home building insurance policy will typically be more expensive than your contents insurance. Combining these policies will cost more than either one would individually. If you add optional cover to your policy, you’ll typically pay a higher premium.

The insured amount you choose

The amount you choose for your building sum insured should reflect the approximate cost of rebuilding your home, including any structural improvements at the insured address. For contents insurance, your sum insured will be the approximate cost of replacing all your belongings kept at the insured address.

There is no single cheapest home insurer for every ACT property. Premiums differ between insurers and can change depending on your address, cover, sum insured and excess. An insurer may price a home in Duffy differently from one in Braddon, Turner or Kingston, as those suburbs are generally considered to have a lower direct fire risk.

You can look for a lower premium by comparing policies, reviewing your sum insured and considering a higher excess if you could afford it at claim time. If you live in an apartment, you may only need contents insurance, as the building itself is often covered by the strata insurance or body corporate insurance. However, price shouldn’t be the only factor you consider when comparing policies. Check what it covers and what you would have to pay if you claimed.

Home insurance in the ACT covers a range of insured events, including bushfires, storms, hail and earthquakes, while flood cover may be included, optional or excluded depending on the insurer and policy.

If you take out home insurance in the ACT, you may be covered for:

• Bushfire: Bushfire cover is generally included as a standard feature of home insurance policies. This can be particularly important in the ACT, where many suburbs are located close to bushland, nature reserves and grassland. Generally, damage caused by flames is covered under standard policies, but heat-related damage, such as scorching or melting, as well as smoke, ash or soot damage may be excluded.
• Flood: Flood cover may be included, available as an optional extra or excluded, depending on the insurer and policy. Properties located near rivers, creeks, stormwater channels and other low-lying areas may face a higher flood risk, which can affect both the availability and cost of cover. Even if flood cover is excluded from your policy, you may still be covered for other insured events, such as storm or rainwater run-off, depending on the policy terms and conditions.
• Storm and hail: Storm, hail and lightning damage are typically included as standard insured events under home insurance policies. However, there are a number of storm cover exclusions, such as storm surge, rising damp, seepage, and damage to retaining walls. So it’s worth reviewing your policy’s inclusions, exclusions and limits to understand exactly what’s covered.

As natural disaster risks can differ significantly from one property to another, it’s important to compare policies carefully and review the PDS before purchasing cover.

Cover for bushfires is not compulsory in the ACT. However, home insurance policies taken out in the ACT will typically provide cover for damage or loss caused by bushfire as a standard inclusion. If your home is adjacent to or near bushland, this will likely increase the cost of your home and contents insurance premiums as per the bushfire attack level rating.

It’s not compulsory for you to have cover for floods in the ACT, but many insurers will offer it as a standard inclusion on their home insurance policies. However, if your area has an above-average risk of flooding, you may pay more in home insurance premiums.

If your sum insured is too low, the payout may not cover the full cost of rebuilding your home or replacing your belongings after an insured event. You’ll usually need to pay the shortfall yourself. This could mean having to compromise on materials or replacement items, or delay repairs and rebuilding until additional funds are available.

When working out how much cover you need, don’t forget to include structures and additions like garages, swimming pools, sheds and solar panels. It’s also a good idea to review your sum insured after renovations or annually as rebuilding costs change. If you compare quotes through Compare the Market, our calculator can help guide your sum insured amount.