Home insurance in NSW (New South Wales)

From July 2025 to June 2026, Compare the Market customers in NSW paid $2,204 a year on average for home insurance (also known as combined home and contents insurance). This is the second-highest average premium in Australia, according to our data.

Average home insurance premiums by state and territory

Note: These figures reflect average quoted home insurance premiums for Compare the Market customers who went on to make a purchase between 1 July 2025 and 30 June 2026, rounded where appropriate. Actual costs may vary depending on policy and individual circumstances.

But the average premium isn’t what every NSW homeowner will pay. Premiums can vary significantly depending on your home, its location and risks and the policy you choose. Costs can vary a lot even between similar policies.

Given the variety in home insurance premiums, and especially considering NSW’s high average prices, it’s all the more important to consider comparing policies before you purchase. Compare the Market can show you a range of policies side by side so you can choose the policy and price that suits your wallet.

Home insurance premiums in NSW are affected by location-specific factors like flooding, bushfires, storms, vandalism and theft, as well as the size and value of your home, the coverage you choose and many other factors. If you live in an area with a higher exposure to these risks, your premiums may be higher. On top of these, factors like your level of cover, sum insured and excess also influence your premiums.

• Weather and natural hazards: NSW is prone to flooding in the Northern Rivers, bushfires in Eurobodalla and storms along the coast. Storms can also lead to associated damage, with recent examples including landslides in Sydney and coastal erosion at Surfside. If you’re in an area considered higher risk, this could mean a higher home insurance premium. It might also mean opting for extra coverage such as flood cover, which could add to your premiums, depending on the policy.
• Crime and security: From March 2025 to March 2026, the Newcastle LGA recorded 934 thefts from homes, the highest number in NSW, followed by the Central Coast, according to the NSW Bureau of Crime Statistics and Research. Blacktown recorded 1,695 instances of malicious damage to residential property, also the highest in NSW. Your premiums could be impacted if you live in these higher-risk areas, though home security such as security alarms can help lower that risk and your premiums.
• Your cover and claims profile: The more coverage you choose and the more your home and contents are worth, the higher your premiums are likely to be. If you opt for extras, these could impact your premiums. A higher excess usually means lower premiums, though it means there’s more to pay at claim time. Your claims history can also affect your premiums.

Flood insurance isn’t compulsory, but if you live in a flood-prone part of NSW, it may be highly desirable. Many insurers include coverage for storms and floods as part of their standard home insurance policies, but in some policies, it may only be available as an optional extra. Depending on where you live, your policy may be more or less expensive based on the area’s flood risk. In especially flood-prone areas, it might not be available at all.

Flooding is a significant hazard in NSW and regularly causes significant damage to homes. For example, in the May 2025 Mid North Coast floods, the NSW State Emergency Service estimates that at least 10,000 properties were damaged. In response, the Insurance Council of Australia declared an insurance catastrophe, recording at least 3,954 home insurance claims from the event.

When looking into flood cover, check the risk for your address. NSW’s flood patterns are complex, and flood risk can vary by region, suburb and property. Flood-prone areas include the Northern Rivers and the Hawkesbury-Nepean Valley, as well as specific centres such as Narrabri, Moree and Forbes. To learn more about your home’s flood risk, contact your local council.

If you live in a part of NSW that’s at a high risk of flooding, taking out a policy that includes flood cover could see you paying higher premiums. If you live in a relatively flood-free area, some insurers will offer the option to remove flood cover from your policy to reduce the cost of your home insurance premium.

No, you don’t need additional cover; home insurance policies taken out in NSW (or anywhere else in Australia) will typically provide cover for damage or loss caused by bushfire as a standard inclusion. Policies often include benefits such as removal of debris and temporary accommodation. But keep in mind that if your home is on bushfire-prone land, the cost of your home insurance premiums will likely be higher.

NSW faces some of the most severe bushfire conditions in the world, so it’s crucial to understand your local risks and prepare for any potential financial fallout. You can check your local council’s maps of bushfire-prone land (which is often near bush, paddocks, grassland or the coast) to understand your risk level, then plan your insurance accordingly. You should consider ensuring that you’re adequately insured for bushfire damage based on your home’s fire risk and select an insured amount that will be enough to fully replace both your building and your belongings.

There’s no single cheapest home insurance policy in NSW, because your premiums are determined by your individual risk level and the sum you’re insured for, as well as the level of coverage and excess you choose. Once you decide the level of coverage you need, comparing a range of policies side by side can help you choose cheap home insurance or a cheaper policy that still meets your requirements. With just a few clicks, Compare the Market can filter policies based on your priorities and show you home insurance quotes for the stated cover level and excess you’re looking for.

To find a great home insurance policy for you, compare a range of policies using a comparison service like Compare the Market. Start by understanding the risks to your property. This might include flooding if you live in a flood-prone area, bushfire if you live near bushland, or theft or vandalism if you live in parts of Western Sydney such as Parramatta or Blacktown. Then, consider the policy inclusions and add-ons you need to cover you for those specific risks.

It’s worth looking into the coverage options in different home insurance policies to get a sense of which insured events you can be covered for, and which are relevant to your home and budget. Standard inclusions in many home insurance policies include:

• storm and rainwater damage
• fire and smoke damage
• theft or attempted theft
• escape of liquid causing damage
• lightning damage
• explosion damage
• earthquake or tsunami damage
• breakage of glass
• legal liability cover.

New-for-old replacement and repair may also be included, which means your insurer may repair or replace covered items as if they were new or replace them with the closest equivalent, subject to the Product Disclosure Statement.

Additionally, depending on the insurer and policy, you may be able to add some or all of the following optional covers to your policy for an extra cost.

Building optional extras

• accidental damage
• motor burnout of electrical appliances causing damage

Contents optional extras

• loss of or damage to portable contents and personal effects like mobile phones and jewellery
• damage occurring while your contents are in commercial storage

Read the Product Disclosure Statement to understand exactly what you’re covered for. It’s also important for homeowners to provide accurate estimates of how much their home and contents are worth to avoid being underinsured.

If you’re underinsured, your insurance policy may not cover the full cost of rebuilding or repairing your home or replacing your belongings after an insured event. You’ll usually need to pay the shortfall yourself. Even if you’re claiming for less than your sum insured, some policies may only pay a portion of your claim if you’re underinsured. This can mean having to settle for cheaper building materials or belongings, as well as a greater delay before you can rebuild, repair or replace what you’ve lost.

To get a quote with an accurate sum insured, consider everything that’s on your property, including solar panels, garages and sheds. If you compare quotes through Compare the Market, our calculator can help guide your sum insured amount.