Home and Contents Insurance Premiums - What Are You Paying?

Odin on 09/06/2021 - 15:13

Pretty basic but just wondering what premiums people are paying. It seems really expensive IMO:

  • Home rebuild cost: $600,000
  • Contents value: $300,000
  • Excess: $5,000

Premium: $1,400 per year

Seems like a lot.

Basically I only care about like a complete theft of everything I own, or a fire or something major. I don't care about the petty shit like broken windows or whatever. That's why I put the excess at max. But still, that premium seems really, really high.

We're in a good suburb in a good neighborhood. Freestanding house. Is this just what insurance costs in 2021?

Home & Garden Home Insurance Insurance

Comments

  • Indomietable on 09/06/2021 - 15:17
    +4

    Contents value: $300,000

    What collection do you have?

    • Odin on 09/06/2021 - 15:23
      -1

      Furniture, vinyl, games, books, tools, etc.

      Lots of clutter ends up adding up. Especially with the recent retro gaming boom in prices.

      • peterwilliams83 on 09/06/2021 - 15:38
        +2

        Have you added up the cost item by item manually to arrive at your $300k figure? Because in the event of a loss, your insurer will ask for justification before paying out…

        • Odin on 09/06/2021 - 15:39
          +1

          Yeah it's all spreadsheeted.

          • GG57 on 09/06/2021 - 15:50

            @Odin: I suppose you could reduce that value by taking an approach of "Do I want to replace that item?". Premium may reduce accordingly.

            Vinyl - you may not be able to replace it, so it would just be gone?
            Books - same?
            Games - maybe outgrown them?

            • Odin on 09/06/2021 - 15:53
              +1

              @GG57: The contents makes up a miniscule portion of the premium cost.

              If I alter the quote to $20,000 total contents value, the premium only drops to $1,333. So a reduction of like 5% for dropping 1/3 the value insured.

              It's kind of (profanity) how they calculate these things

              • Indomietable on 09/06/2021 - 16:46
                +1

                @Odin: How much does it cost to build your house from scratch?

                In Melbourne, I can get a comparable 4 bedroom house built by volume builders for under 300k , so I put 400k for building and I only insure 60k for content. I'm paying $830 for $750 excess using Blue Zebra.

                • Geoff897 on 09/06/2021 - 17:38

                  @Indomietable: Yes you can build the bare min for $300k would it be the same quality you have now or very basic entry level?

                  A few changes will add up quickly plus they need to factor in clearing the old house which could cost 30-40k, Plus council and engineering fees

                  • Indomietable on 09/06/2021 - 18:45

                    @Geoff897: It would be basic entry level and the idea of insurance for me is safety net - not a betterment.

                    Also, the chance of me having to rebuild the house from scratch is extremely small. I live within 15K of Melbourne CBD. No flood / fire danger. Not anywhere near bush, paddocks, grassland, or scrubs. Quiet residential street ( no through road ).

                    But if something major happen, I probably use the 400k and borrow more money from bank to build 3 townhouses.

  • beeawwb on 09/06/2021 - 15:21

    How long is a piece of string? IMO there are so many factors that go in to determining a premium there's no way of comparing unless you're asking somebody in the same few blocks you're living on.

    • Odin on 09/06/2021 - 15:25

      Ok, well using the premium calculator, I go up a few houses on the same street and the premium drops to $930 per year. Exact same details, I just changed the house number.

      Next door neighbour is $200 less with zero changes to policy details.

      What gives?

      • beeawwb on 09/06/2021 - 15:30
        +1

        That's a good way of comparing, yeah. If it was me then I'd be putting in a call to the insurer at that point and saying "what gives!?"

        Off the top of my head a possible thing would be the flood rating of the property. I know in my suburb we live in a new development and the flood mapping still shows the pre-development flood zones (i.e. doesn't take new drainage in to account) and the mapping has lots of curves on it so you've got instances where literal neighbours have different flood ratings because it thinks there's still an elevation change there (e.g. a hill). Have complained to council multiple times but they still haven't updated the maps, so we get a lot of people asking about insurance in the community FB group.

      • skid on 09/06/2021 - 15:30

        I think this is what insurance costs in 2021. Mine is similar and last year it was less than $1200. Quite a large hike for a year. Not happy. And my contents is more like $30000. $300k contents, do you have a huge house or is your stuff made of gold?

        • Geoff897 on 09/06/2021 - 16:00
          +2

          30k is quite low and 300k is seems high.
          @30k have you factored in replacing every day items, phones, clothes, linen, kitchen appliances and accessories

          Would easily see 5k each person on clothes if you were to buy everything at once, Portable electronics 3k pp. Your at half already with 2 people

      • DJR9000 on 09/06/2021 - 16:09
        +2

        difference is your neighbour's address probably hasn't used that insurer and they want to offer a cheap rate to win the business if they switch

      • pharkurnell on 09/06/2021 - 16:59

        Bloke at work had that same issue with his unit… change the unit number to one behind him and it dropped shit loads.

  • SanAndreas23 on 09/06/2021 - 15:45

    with 900k total I find that premium to be fair enough. I'm paying 900-1000 but with mid tier excess, for only $450k total home and contents value.

  • Nugs on 09/06/2021 - 15:49
    +1

    "Excess: $5,000"
    that's excessive
    .

  • Ocker on 09/06/2021 - 15:49

    Just got my renewal today
    Building $1,213,000 excess $500
    Contents $193,000 excess $300
    premium $2,013.50.
    An increase of 26% from last year, bringing the 4 year increase to 79%

    • brendanm on 09/06/2021 - 17:12

      An increase of 26% from last year, bringing the 4 year increase to 79%

      What a bargain.

    • Lichen6420 on 10/06/2021 - 11:28

      Would the structure actually cost that much to rebuild??

  • John Kimble on 09/06/2021 - 16:07

    I only have contents for ~$170k and it is $970 :(

  • pharkurnell on 09/06/2021 - 16:54

    After recent fires, storms, and 20 other bullshit things they will throw on top (like everywhere is now a flood plain even top of kosciuszko) etc you can expect another increase too - as Ocker above found out… .

    An increase of 26% from last year, bringing the 4 year increase to 79%

  • onetwothreefour on 09/06/2021 - 18:25
    +2

    I'm getting ripped off after reading this thread :-(

  • Maglia Nera on 09/06/2021 - 20:26
    +1

    Sum(s) Insured
    Home $1,135,706 excess $500
    Contents $323,066 excess $500

    Total Payable $2,512.18

    with Budget Direct

  • andrek on 10/06/2021 - 07:45

    Just got my renewal notice a couple of days ago.
    AAMI's Building and Contents Insurance
    3 bedroom house
    Building Sum Insured: Complete Replacement Cover
    Contents Sum Insured: $66,900
    Legal Liability: $20 million
    Building Flexi-Premiums Excess: $300
    Contents Flexi-Premiums Excess: $200
    Unoccupied Excess: $1,000

    Total: $1,265.94 (down from $1,374.00 last year)

  • singingwolf on 10/06/2021 - 07:50

    Since the floods and bush fires, premiums have sky rocketed

  • Darayus on 10/06/2021 - 09:38
    +2

    Home insurance is the least people claim and it's use in case the house has been gutted by fire or floods.

    Better do your research and find the cheapest home insurer and cover your house. Rember don't insure for land value only building cost. For content, if the content is fixed to the wall and floor then it becomes part of the house such as carpet, flooring tiles and Aircon and Fan. Insure the only TV, bedroom furniture and garden shed.

    In my history of 30 years we have never claim any insurance against home risk but who knows what happens and hence it's advisable to have the house insured but with the cheapest insurer company.

  • dimitryp on 10/06/2021 - 09:53

    i do a similar thing to you, push the excess to max to reduce premiums, coz realistically i only care if entire house falls down/burns down, dont care if a bit of roof tiling is damaged or whatever.

  • popsiee on 10/06/2021 - 10:05

    Cool everyone thinks they have coverage . I suggest you look at people who have tried to claim stories .
    Easy to find in reviews of your company .

  • Cliche Guevara on 10/06/2021 - 12:40

    New Budget Direct customer. South-western suburb of Sydney
    Home $650k with $5k excess
    Contents $125k with $500 excess
    Took the optional Sum Insured Safeguard which means they'll increase your coverage if you underestimate the home value.
    Total $700.88

  • cheaplee on 10/06/2021 - 12:58

    OP is your quote with a new insurer? Or the same one you have been with for a few years?

  • Jugganautx on 10/06/2021 - 13:43

    Seems everyone in here is from melbourne or sydney where tin sheds cost over a million to build.

    • nephilim on 10/06/2021 - 13:47
      -1

      Insurance is the cost to rebuild, not the cost of the "house" in the neighbourhood.

  • nephilim on 10/06/2021 - 13:46
    +1

    Lucky in Adelaide, House 380k (2 story, 1:1 of a fully upgraded display house), contents (50k). We pay $30 a month roughly after haggling with our credit union.

  • popsiee on 10/06/2021 - 16:43
    -1

    I think if you must insure with someone who doesn't act in the dog eat dog finding every excuse not to pay out .
    That is none of them unfortunately .
    The once reputable companies joined this club too to be competitive .

  • nikey2k27 on 10/06/2021 - 17:03

    Townsville north Queensland I pay $4200 for 300,000 and 50,000 contents i had total loss in 2019 if want more info PM.

    • Michael1 on 10/06/2021 - 20:53

      Here I am reading all these going "holy crap these are cheap!" Joys of insurance up here. $470,000 house, $60,000 contents $3480 (no claims yet).

Login or Join to leave a comment
Login Join