Home Insurance Prices Explained

There’s no doubt that insurance can sometimes seem a little complicated.

To help you understand more about how the price of your home insurance is calculated, and to provide you with options on how you can save, we’ve created this simple guide.

The things that affect everyone

There are some factors that impact the price of your home insurance regardless of who you are and where your home is located.

Weather events

The frequency and nature of weather events impact the amount and severity of claims received. In periods of severe weather, such as storms or hail, we often see an increase in the number of claims which can put pressure on prices to rise.

Rebuilding, repair and replacement costs

The cost of rebuilding, repairing and replacing building and contents is increasing at a rate that exceeds the current CPI. Increasing labour and materials costs can impact the price of insurance.

Nature and volume of claims

If the number and variety of claims we receive changes, customer prices may also change. As building techniques, materials and in-home technology progress, the nature of claims becomes more complex. This, combined with an increase in population density in Australia, impacts the general insurance industry.

How your circumstances affect your premium

In calculating prices, we consider many factors that statistically influence the likelihood of you having a claim. 

  • Where you live

    The number of claims in your area, crime rates and the exposure to natural events such as bushfire and flooding.

  • The total sum insured

    The total sum you insure your Building and/or Contents for. It’s important to make sure you’ve got the right amount of cover so that you are covered for the rebuild and/or replacement costs if you had to make a claim.

  • The type of building

    The type of home you live in, its age, the construction materials used to build it and any security features such as alarms, deadbolts and window locks.

  • Previous claims experience

    If you haven’t claimed on your insurance in the past, it’s a pretty good indicator that you are less likely to claim in the future.

  • How your home is used

    We offer you a lower premium if you use your home for personal use only, compared to it being rented out to tenants or being used for business purposes. If the way you use your home changes, it’s important to let us know as this may impact your policy coverage.

  • Other factors

    Including your age, how many years you have held insurance and if your home is under finance.

Flexible cover options

Flexible cover options help you to tailor your policy to your needs. If adjusting your cover, please ensure that the revised cover suits your specific needs.

 Flexibility of optional extras

Our Home and Landlord Insurance policies give you the ability to tailor your policy to your needs. You can choose to add cover for motor burnout, accidental damage, specified portable contents, damage caused by tenants, rent default and loss of rent.


Your sum insured

You can vary the total sum insured for both the building and contents. It’s important to make sure that your total sum insured is adequate to replace your building and contents in case of a claim.


Increase your excess

If you’re able to pay more in the unlikely event of a claim, you can save money on your premium by increasing your excess.

Pay annually, pay less

Do you have any questions?

Our friendly contact centre insurance experts are ready to help

Call 1300 265 374

Due to COVID-19, we are currently at limited capacity at our Coles Insurance contact centres.

Product related

Standard underwriting criteria apply. Coles Supermarkets Australia Pty Ltd (Coles) is an authorised representative of the issuer, Insurance Australia Limited (ABN 11 000 016 722) (AFSL 227681), part of Insurance Australia Group (IAG). Any advice provided is of a general nature only and does not take into consideration your objectives, financial situation or needs. Before acting on any advice you should consider its appropriateness. You should read the Product Disclosure Statement and Target Market Determinations before deciding whether to acquire an insurance policy.

+Policy limitations, exclusions and conditions apply. For full terms and conditions, see the Product Disclosure Statement.