Home and contents insurance calculator: how much to insure
Use the room-by-room estimator below to add up what it would cost to replace your contents at today's prices, and insure your home for what it would cost to rebuild today, not what it would sell for, including demolition, professional fees and the cost of meeting current building standards. Both figures should be checked every year.
Getting these numbers wrong is common. Moneysmart describes underinsurance as very common in Australia and notes that most people do not know they are underinsured. ASIC's 2005 report on home insurance found that, depending on the survey, between 27 and 81 per cent of consumers were underinsured by 10 per cent or more. The consequences can reach beyond a total loss: under an averaging clause, even a small repair claim can be paid only in part. The underinsurance calculator in our home insurance guide shows what that does to a claim.
By Better Rate Mate Editorial Team ยท Last reviewed
General advice only. It doesn't consider your circumstances. Read the PDS and TMD before you decide.
Room-by-room contents estimator
Walk through the home and enter what it would cost to replace everything in each room, new, at today's prices. Then check any category your policy caps, such as jewellery or electronics, against its limit.
Replacement cost of what's in each room, new, at today's prices ($)
Estimated contents sum insured
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Enter a value for each room to see your total.
Check your category limits
Policies cap some categories, such as jewellery and watches, art or electronics. Enter your own total for a category and the limit your policy sets for it (from the PDS or Key Facts Sheet).
Rebuild cost is not market value
Market value includes the land, which a fire or flood does not destroy, and it moves with the property market rather than with building costs. Rebuild cost is what it would take to clear the site and construct the same home again, at current prices, to current standards. In expensive suburbs the rebuild cost can be far below market value; in regional areas, or for older homes with character features, it can be higher. Moneysmart notes that rebuild costs often rise faster than people expect.
Rebuild-cost checklist
A building calculator, such as the Insurance Council of Australia's or your insurer's, does most of the work, provided you give it accurate details. Have these ready before you start, then add the costs calculators can miss.
| Detail | What to note | Why it matters |
|---|---|---|
| Floor area | Living area plus garages, decks, verandahs and outbuildings | The biggest single input; measure, or use the building plans |
| Construction | Wall and roof materials, number of storeys, ceiling heights, quality of fittings | Materials and finish drive the cost per square metre |
| The site | Slope of the block and access for trucks and machinery | Sloping or hard-to-reach sites cost more to clear and rebuild |
| Age and features | Year built, heritage features, architect design | Older or unusual homes can cost more to rebuild than a project home |
| Other structures | Fences, retaining walls, sheds, pools, driveways | Often part of the building cover, and easy to leave out |
| Costs on top | Demolition and debris removal, asbestos, architect, engineer and council fees, current building codes including bushfire standards | Calculators may leave these out; some policies pay them inside the sum insured, not on top |
Step by step: your contents sum insured
Go room by room and list what you would need to replace, at today's prices for new items; the estimator at the top of this page does the adding up. Include the garage, shed and garden, clothes and shoes for everyone, linen, kitchenware, tools, sports equipment and anything stored off-site if the policy covers it. Filming each room gives you a record for claims and a prompt for things you forgot. Then check the policy's category limits: if your jewellery, art or electronics exceed them, list those items separately. There is no official 'typical' contents figure to check yours against; see contents insurance for why.
How underinsurance reduces a claim
If your sum insured is too low, a total loss claim is capped at the sum insured, so you carry the shortfall. The less obvious risk is an averaging (coinsurance) clause. Moneysmart explains that most policies with a coinsurance clause apply it when you are insured for less than about 80 to 90 per cent of the replacement value, and that it can reduce every claim, not just a total loss.
Moneysmart's worked example: a home that would cost $600,000 to rebuild is insured for $400,000, which is 33 per cent underinsured. A $15,000 garage repair is paid at 67 per cent, about $10,000, leaving the owner $5,000 out of pocket. If the house is destroyed, the insurer applies the same proportion to the $400,000 sum insured and pays about $268,000 towards a $600,000 rebuild.
| Claim | Cost | Insurer pays (67%) | Owner pays |
|---|---|---|---|
| Garage repair after a tree falls | $15,000 | $10,000 | $5,000 |
| Total loss and rebuild | $600,000 | $268,000 | $332,000 |
Sum insured, buffers and total replacement
Most policies pay up to the sum insured you choose. Many add a buffer, a percentage above the sum insured that is available if a total loss costs more than expected, and a few offer total replacement cover that pays the actual rebuild cost subject to conditions. A buffer is valuable but it is not a reason to round down: it is there for the costs no calculator predicts, such as post-disaster price surges. Moneysmart suggests checking whether a policy includes cover above your sum insured when you compare.
What makes sums insured go stale
Moneysmart lists the common causes. Most are simply time passing.
- Building cost inflation and trade shortages, especially after regional disasters.
- Renovations and extensions, including new kitchens, bathrooms, decks and solar panels.
- New furniture, appliances and electronics bought since the policy started.
- Changes to building codes, including bushfire and energy efficiency requirements.
- Accepting a renewal without reading it. Some insurers index the sum insured automatically, which helps but is not a substitute for a check.
General advice only. This information doesn't take into account your objectives, financial situation or needs. Consider whether the product is right for you and read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) before you decide. We don't compare every product in the market, and we may earn a commission if you take up a product through our links.
What to watch for
- Market value includes the land. Insure for the rebuild, not the sale price.
- An averaging clause can reduce small claims as well as total losses.
- Additional costs such as demolition and professional fees may sit inside your sum insured, not on top.
- Automatic indexation helps with inflation but does not know about your renovation.
- Contents category limits apply even when the overall contents sum insured is right.
Common questions
How do I calculate how much to insure my house for?
Use a detailed building calculator with your floor area, construction materials, slope and site access, then add demolition, debris removal, professional and council fees and the cost of meeting current building standards. For unusual homes, get an estimate from a quantity surveyor.
Should I insure my house for market value or rebuild cost?
Rebuild cost. Market value includes the land, which does not need replacing, and it moves with the property market rather than construction costs.
What happens if I'm underinsured?
A total loss is capped at your sum insured, leaving you to fund the gap. If your policy has an averaging clause and you are insured for less than the threshold it sets, partial claims can be reduced in proportion to the underinsurance too.
How much content insurance should I have?
Enough to replace everything you own with new items at today's prices. A room-by-room list, like the estimator on this page, or the Insurance Council of Australia's contents calculator, is the most reliable way to get there. No regulator publishes a typical figure to compare against.
How do you estimate the value of household contents?
Go room by room and price what you'd need to replace, new, at today's prices, including the garage, clothes and linen. Add the rooms up, then check any category your policy caps, such as jewellery, against its limit and list items that exceed it.
How often should I review my sum insured?
At every renewal, and after any renovation, major purchase or change in building rules for your area.
What is the average value of the contents of a 3 bedroom house?
No regulator publishes one, and we found no government source that gives a typical contents figure by number of bedrooms. A bedroom count says little about what's inside: a sparsely furnished rental and a family home with a garage full of tools can have the same number of bedrooms. The Insurance Council's calculator describes its result as an approximate guide only. Use the estimator on this page to add up your own.
What is a good amount for contents insurance?
The amount it would cost to replace everything you own with new items at today's prices, and no less. Add it up room by room with the estimator on this page, then check any category your policy caps, such as jewellery or electronics, and list items that exceed the cap. Review it at each renewal.
How much does home and contents insurance usually cost?
The ACCC's June 2026 insurance monitoring report put the average combined home and contents premium at $2,360 in 2024-25, and the average contents-only premium at $531. Your own premium depends on your address, sum insured, excess and the cover you choose. Our home insurance guide has the averages by state and region.