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Compare Building Insurance
Written by
Tina Sendin
Edited by
Ellie Garran
Reviewed by
Adrian BennettOur Home and Contents partners
iSelect does not compare all providers in the market or all policies offered by our partners in your area. Not all policies or special offers are available to all customers. Learn more.
What is building insurance?
Building insurance is a type of home insurance that could help you look after the place you worked so hard for when the unexpected happens. Whether it’s a fixer-upper or the house you want your kids to always call home, it could help cover the costs of repairing or rebuilding parts or all of your property.
It doesn’t just cover the four walls and a roof – it could also cover permanent physical structures (e.g., showers) and outbuildings (e.g., garage and garden shed). You may even be covered for temporary accommodation while your home is being fixed.
Do I need building insurance?
If your home was damaged or decimated, can you imagine trying to pull the funds together to set things right again? Without building insurance, you might need to set up a GoFundMe page. With it, if the worst happened, things could get back on track quickly, and you could sleep peacefully at night.
Buying a home with a mortgage? Most lenders will require you to have building insurance, to protect their investment in case of damage. On the flipside, if you’re a renter, you don’t have to get building insurance; that’s on your landlord.
Types of building insurance
There are a few different types of Building insurance, each one designed to cover your buildings against various events and situations (what insurers call ‘insured events’).
Home building insurance
This type of building insurance protects the physical parts of your home – including fixtures like the dishwasher and fittings like your taps. Essentially anything that doesn’t fall out if you flip your house upside down! It can also cover any other buildings on your property, like a granny flat, garage, in-ground pool, carport, shed, or fences.
Just a heads up – home building insurance doesn’t cover the stuff inside your home. That’s what contents insurance is for.
Strata insurance
Strata insurance is a type of building insurance used for shared spaces. For homeowners living in apartments or units, strata insurance is usually taken care of by your body corporate, with the cost shared between owners. It covers you if there’s damage or loss in communal areas like hallways, stairwells, driveways, balconies, shared gardens, and pools.
It’s there to make sure everyone’s chipping in for the upkeep and repairs of the shared parts.
Landlord insurance
Landlord insurance is a type of building insurance specifically designed for investment properties. Just like home building insurance, it covers the physical structure of your investment property against things like storms, fire, and floods. But it also includes extras tailored for landlords, such as protection against loss of rent, and sometimes even damage caused by tenants. It’s basically a safety net for both your property and your rental income.
What events does building insurance typically cover?
Fire: With hotter summers and bushfires on the rise, fire damage may be something more of us have to deal with.
Storms and lightning: While there’s nothing quite like watching a sky filled with lightning, front row seats to a spectacular storm can leave your house a little worse for wear.
Earthquakes: If an earthquake has your home shaken up, building insurance could help put things straight.
Impact from falling trees: Forget widow makers, some trees are downright homewreckers. From dead branches to windy days, that beautiful tree you love to gaze at might get too close for comfort.
Vandalism and theft: Whether it’s malicious damage or a bungled burglary, unwanted visitors could mean your house needs a little extra TLC.
Breakage of glass and ceramic fixtures: Even if your home is bricks and mortar, there are still more fragile parts, like windows, that could become easily damaged – and cost a lot to repair or replace.
Asbestos: If your place has asbestos issues, you’re on your own – insurance won’t touch it.
Defects, structural faults, or design faults: Dodgy building work or design flaws? Sorry, but that’s not covered.
Intentional acts by you or with your consent: If you caused (or gave permission to cause) damage, you can’t count on a payout.
Repossession: If the bank takes your home, insurance won’t cover any damage.
Not keeping your property in good condition: Letting your place fall apart? Insurance won’t cover neglect.
Terrorism: Damage from terrorist acts is usually excluded – bit of a heavy one, that.
Vermin: Rats, termites, or other pests causing havoc? That’s on you to sort out.
If your home is unoccupied for a certain length of time: Leave your place empty too long, and your cover might go out the window.
These are some of the optional extras you might find in a policy (note that they might not be available on every policy).
Accidental damage: For those ‘oopsie’ moments, like deciding to put a glass of red wine on the pristine off-white carpet while your labrador is having his arvo zoomies.
Motor burnout: If your fridge or air-con motor carks it, this can help cover the repair or replacement.
Sum insured safeguard: If the cost to rebuild your home ends up being more than the amount you’re insured for (aka ‘sum insured’), this extra kicks in to help cover the gap.
Flood cover: This isn’t always included, so you might need to add it if you’re in a flood-prone area.
Portable valuables: Also known as personal effects cover, this takes care of your stuff when you’re out and about – think jewellery, phones, or your fancy sunnies.
Landlord insurance: If you’re renting out your place, this can cover tenant-related dramas like damage or missed rent.
Fire: With hotter summers and bushfires on the rise, fire damage may be something more of us have to deal with.
Storms and lightning: While there’s nothing quite like watching a sky filled with lightning, front row seats to a spectacular storm can leave your house a little worse for wear.
Earthquakes: If an earthquake has your home shaken up, building insurance could help put things straight.
Impact from falling trees: Forget widow makers, some trees are downright homewreckers. From dead branches to windy days, that beautiful tree you love to gaze at might get too close for comfort.
Vandalism and theft: Whether it’s malicious damage or a bungled burglary, unwanted visitors could mean your house needs a little extra TLC.
Breakage of glass and ceramic fixtures: Even if your home is bricks and mortar, there are still more fragile parts, like windows, that could become easily damaged – and cost a lot to repair or replace.
Asbestos: If your place has asbestos issues, you’re on your own – insurance won’t touch it.
Defects, structural faults, or design faults: Dodgy building work or design flaws? Sorry, but that’s not covered.
Intentional acts by you or with your consent: If you caused (or gave permission to cause) damage, you can’t count on a payout.
Repossession: If the bank takes your home, insurance won’t cover any damage.
Not keeping your property in good condition: Letting your place fall apart? Insurance won’t cover neglect.
Terrorism: Damage from terrorist acts is usually excluded – bit of a heavy one, that.
Vermin: Rats, termites, or other pests causing havoc? That’s on you to sort out.
If your home is unoccupied for a certain length of time: Leave your place empty too long, and your cover might go out the window.
These are some of the optional extras you might find in a policy (note that they might not be available on every policy).
Accidental damage: For those ‘oopsie’ moments, like deciding to put a glass of red wine on the pristine off-white carpet while your labrador is having his arvo zoomies.
Motor burnout: If your fridge or air-con motor carks it, this can help cover the repair or replacement.
Sum insured safeguard: If the cost to rebuild your home ends up being more than the amount you’re insured for (aka ‘sum insured’), this extra kicks in to help cover the gap.
Flood cover: This isn’t always included, so you might need to add it if you’re in a flood-prone area.
Portable valuables: Also known as personal effects cover, this takes care of your stuff when you’re out and about – think jewellery, phones, or your fancy sunnies.
Landlord insurance: If you’re renting out your place, this can cover tenant-related dramas like damage or missed rent.
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What parts and fixtures of my home does building insurance typically cover?
Typically covered
your home’s structure – the four walls and the roof
fixtures like your built-in wardrobes and air conditioner
fittings like the shower
outbuildings like garden sheds and carports
permanent structural improvements like an extension.
Not typically covered
any caravans or mobile homes, even if converted into a dwelling
above-ground and inflatable swimming pools (in-ground ones are typically covered)
artificial grass turf, garden beds, hedges, and lawns
internal blinds, curtains, and window coverings
retaining walls
structures built for business or farming like agricultural fencing.
Helpful tip
It’s worth regularly reviewing (and updating) your building insurance to ensure the ‘sum insured’ reflects current construction costs. The sum insured represents the estimated cost of rebuilding if your property were to be totally destroyed.
Construction costs can rise over time due to inflation and market changes, so an outdated policy might leave you underinsured in the unfortunate event that you need to rebuild.
Adrian Bennett
General Manager for General Insurance
How much does building insurance cost?
What’s my home’s risk of an insured event?
Like humans, older homes come with their fair share of creaks and groans. This can also mean that a claim on building insurance isn’t too far off. Leaky pipes or simply having weathered one too many summer storms can cause everything to come tumbling down.
Just to be clear, older homes are classified as any properties that are 50 years or older, but you may find that some homes have better bones than others.
Age isn’t the only factor that can put your home at risk, though. It’s also location, location, location. Some parts of Australia are more prone to floods, while others get more than their fair share of fires. You can also drill down to a suburb level for vandalism and break-ins.
Which factors can affect the cost of building insurance?
Building insurance premiums can vary based on a bunch of factors. Here’s the lowdown:
Sum insured
The bigger the sum you’re insuring your home for, the higher your premium will be. It’s important to get a dollar figure that represents the actual value of your home (or as close as possible), as underinsurance can hurt your wallet if the unfortunate happens and you need to make a claim.
Location
If you’re in an area prone to wild weather or crime, you might cop a higher premium.
Age and materials
Newer homes or ones built with sturdy materials usually cost less to insure.
Security features
Got good locks, alarms, or cameras? That can help bring your premium down.
Claims history
Made a few claims recently? That could bump up your premium.
Excess
Choosing a higher excess can lower your premium, but you’ll pay more out of pocket if you claim.
Optional covers
Adding extras to your policy will increase the cost.
Government charges
Taxes and levies can also add to the total.
Now, if you’re thinking ‘geez, building insurance might cost a bit’, it might be a good idea to weigh up what it’s worth.
Building insurance can cover you for costly repairs if something unexpected happens – like a fire, a storm, or even a tree deciding to crash through your roof.
Without it, you’re taking a massive financial gamble. Imagine forking out tens of thousands to fix major damage or, worse, rebuild your home. That’s enough to wipe out your emergency fund!
For most homeowners, building insurance means peace of mind knowing you’re not left high and dry if disaster strikes. Better to have it and not need it than to need it and go, ‘uh-oh, wish I got that cover.’
How can I save on building insurance?
Unless you’ve won the lotto, nothing in life comes for free. But there are a few things you can tinker with to bring down your premium.
Bump up your excess
Paying a little more when you need to claim could shrink your premium (though it’s worth making sure you can afford the excess should you need to make a claim).
Laser in on that estimate
While it’s important to avoid under-insuring your home, over-insuring it could mean you’re paying more in premiums. Instead, you might want to have a go at a more accurate estimate.
Beef up your home security
A secure home is less likely to be broken into, or so the thinking goes for insurers. Installing an alarm or two, for instance, could lower your premium.
Tailor your cover
Bells and whistles are nice and all, but going for every extra could be supersizing your premium. It’s worth just getting the optional covers you truly need; you can always revisit your policy and compare options down the line!
Compare policies
You wouldn’t buy the first shirt you see on the rack, so why treat building insurance any differently? Comparing building insurance policies could help you find one that offers better value (and a lower premium).
How much should I insure my building for?
There’s no one-size-fits-all home, and that means there’s no one-size-fits-all coverage amount for building insurance. But you can estimate what yours could be by using an online calculator and taking into account more than simply the size of your house and what it’s made of.
Think about the quality of the fixtures, for instance. Are they from IKEA and Bunnings or somewhere a little more upmarket? If you want a more accurate answer, it may be worth working with someone who’s in the business, like an architect, to really nail down that answer and set aside those under-insured anxieties.
You might also want to think about other expenses that come with rebuilding a home. Where will you and your family stay in the meantime? If you think you might wear out your welcome at friends’ homes or you’d rather not head back to your childhood bedroom, you might want cover that includes temporary accommodation.
Frequently asked questions
What providers offer building insurance in Australia?
We’ve partnered with contents insurance providers to help you compare policies.
- ahm
- Budget Direct
- Coles
- Everyday Insurance
- Huddle Insurance
iSelect does not compare all providers in the market or all policies offered by our partners in your area. Not all policies or special offers are available to all customers and some may only be available over the phone or on the website. Learn more.
Here are some other insurers available in the market today:
- 1300 Insurance
- 1Cover
- AAMI
- Allianz
- Ansvar
- ANZ
- APIA
- Assetinsure
- Aussie (AHL Investments Pty Ltd)
- Australian Seniors Insurance Agency
- Bank of Melbourne
- BankSA
- BOQ
- Bupa
- CBA Insurance
- CCI Personal Insurance
- CGU
- CHU
- COTA Insurance
- Defence Service Home Insurance Scheme
- Dodo
- Elders Insurance
- Flex Insurance
- FM Global
- GIO
- Guild Insurance
- Hollard Australia
- Honey
- ING
- InsureLite
- MHIA
- National Seniors Insurance
- NRMA
- Over Fifty Insurance
- Ozicare
- QBE
- RAA Insurance
- RAC
- RACQ
- RACT
- RACV
- Real Insurance
- RentCover Landlord Insurance
- Retirease Insurance
- SGIC
- SGIO
- SGUA
- ShareCover
- St. George
- Strata Community Insurance
- Suncorp Insurance
- Terri Scheer Landlord Insurance
- Territory Insurance Office
- Westpac
- WFI
- Youi
Is building insurance mandatory in Australia?
Nah, building insurance isn’t legally mandatory in Australia, but if you’re applying for a mortgage, your lender will likely ask for it. They want to make sure their investment’s covered if something goes pear-shaped.
If you own your home outright (say you’re one of the lucky ones who inherited a property from the bank of Mum and Dad), it’s totally up to you – but going without it is a pretty risky move!
What’s the difference between sum-insured and total replacement cover?
In the grand scheme of things, sum-insured and total replacement cover both cover you to rebuild or repair your home.1For more information, see Moneysmart – Choosing home insurance The difference lies in the risk of being underinsured.
Sum-insured cover uses an estimate of what it would cost to fully rebuild your home if it suddenly became a pile of rubble. Total replacement cover goes a step further by covering the cost of rebuilding your home to exactly how it was (or close to). With sum-insured cover, you may find that your home is underinsured. However, total replacement cover can be harder to get hold of and more expensive than its sum-insured sibling.
There are a couple of things you could try to get more value out of your sum-insured cover to close that gap between the two types of cover:
- check whether your insurer offers a safeguard or safety net feature that gives you more cover if you’re dealing with a total loss
- get pedantic with your calculations and look at elemental estimating, which can be more accurate than going off standard cost per square metre.
Do I need building insurance if I’m part of a body corporate?
If your home is part of a strata, you may already have a level of building insurance, thanks to your body corporate. However, it might be worthwhile to double-check what coverage this offers and whether you want to extend it with your own policy.
Additionally, if it’s an investment property you’re thinking about, you may want to consider landlord insurance. This could give you coverage for damage to your property caused by tenants.
Does building insurance vary between states in Australia?
Yes, building insurance varies in each state because they have their own risk profiles and property market. For instance, Queensland is more prone to cyclones, while Victoria tends to experience bushfires more. So, insurers will look at the risk profile of a Queensland home differently to a Victorian one (and Sunny Coast locals might have to get additional cover for flood more than those living in Melbourne).
To know what the go is in your respective state, here are some helpful pages for you:
Do I need insurance for a home renovation?
Before you start knocking down walls, keep in mind that renos can bring some risks, and your standard building insurance might not cut it. Standard policies usually don’t cover construction work, but building insurance can help with things like legal liability for injuries or damage onsite. Since every insurer’s different, it’s worth giving yours a buzz to check what’s covered.
Is my home covered while unoccupied?
Most policies have limits on how long they’ll cover a place if no one’s living there. For instance, some insurers consider a home unoccupied if no one’s been living there for up to 60 consecutive days. However, some apply an excess – called an unoccupied excess – if you need to make a claim for loss or damage while you were away and your home was considered ‘unoccupied’. If your home’s going to be empty for a while – like during a reno – you might want to chat with your insurer to make sure you’re still covered.
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