Best Home Insurance in Australia: Comparing Value, Coverage and Key Features
Home insurance comparisons: what “best” can mean
Finding the best home insurance in Australia is rarely about a single feature. Most people are balancing several priorities at once: a competitive premium, cover that feels comprehensive, and confidence that the policy will respond the way they expect when they need to claim. When comparisons look at both price and features, the “best” option for one household may not be the same for another.
This article summarises a selection of home and contents insurance policies that have been assessed using a structured approach. The comparison draws on research that involved reviewing the features of more than 50 policies and obtaining more than 500 quotes. In addition, a separate award methodology referenced 430 quotes across 44 home and contents insurance policies, with quotes collected in every major state of Australia. Insurers were scored based on 16 commonly covered features, with a final score calculated using a combined weighting of features and price, using a 70/30 split (features/price).
Within that framework, several insurers stood out for different reasons: overall balance, generous benefit limits, flood cover included as standard, and strong value for money. Below is a detailed look at the policies highlighted, along with the specific strengths attributed to each.
Budget Direct Home & Contents Insurance: a well-rounded option
Budget Direct Home & Contents Insurance is described as a well-rounded policy that “delivers on all fronts.” The policy is positioned as flexible, with the ability to add as many features as you’d like. It is also described as typically cheap, while still offering great customer service.
In recognition of customer experience, Budget Direct recently won a Customer Satisfaction Award for home insurance. It has also received a score of 9.27/10 in the scoring system referenced in the research.
Additional recognition includes winning the 2024 award for Customer Satisfaction and being highly commended in the 2025 home insurance product awards. Based on the research cited, Budget Direct is considered one of the cheapest providers while providing similar cover to more expensive insurers.
- Positioned as a well-rounded policy with broad appeal
- Allows customers to add features as desired
- Described as typically cheap, with great customer service
- Received a score of 9.27/10
- Won a 2024 Customer Satisfaction award and was highly commended in 2025 product awards
- Considered among the cheapest while offering cover comparable to more expensive insurers
For households that want a balance between price and coverage, and that value strong service feedback, this combination of affordability, flexibility and customer satisfaction recognition is presented as Budget Direct’s core advantage.
Honey Home & Contents Insurance: thorough cover and generous benefit limits
Honey Home & Contents Insurance is highlighted for thorough coverage and generous benefit limits. This emphasis on higher limits is linked to its strong overall score of 9.57/10.
The policy is described as offering a good product at a reasonable price. The comparison notes that Honey can outdo competitors by offering higher benefit limits while remaining competitively priced. It is not described as the cheapest option, but it is also not positioned as the most expensive.
For customers who prefer to spend a little more in exchange for a product that feels highly comprehensive, Honey is presented as a suitable option. The key theme is not bargain pricing, but rather a balance of competitive pricing with stronger benefit limits and thorough coverage.
- Thorough coverage with generous benefit limits
- Received a score of 9.57/10
- Described as a good product at a reasonable price
- Often offers higher benefit limits while staying competitively priced
- Not the cheapest, but far from the most expensive
- Positioned for those seeking a comprehensive product
In practical terms, this kind of positioning can appeal to homeowners who are less focused on finding the lowest premium and more focused on feeling confident that benefit limits and overall coverage are generous.
QBE Home & Contents Insurance: flood included as part of an insured event
QBE Home & Contents Insurance is noted for automatically covering flood damage. Flood is included in the insured event described as “storm, storm surge, rain, hail or flood.” This structure is presented as a meaningful difference in how claims may work compared with many other insurers.
The comparison explains the potential practical impact: with most insurers, storms and floods are considered two separate insured events. If a home experiences both storm and flood damage, a policyholder may need to pay two excesses. Under the QBE structure described, this may not apply in the same way, which is presented as making claiming “a little simpler.”
QBE has been given a score of 9/10. The research also states that, among the policies reviewed, QBE was one of the few providers to include flood as standard. It was also cheaper than some providers that do not include flood cover.
- Automatically covers flood damage
- Flood included within an insured event covering storm-related conditions
- Designed to simplify claiming compared with policies that separate storm and flood events
- Received a score of 9/10
- One of few providers including flood as standard in the research sample
- Cheaper than some providers that do not include flood cover
For homeowners who are particularly focused on flood inclusion and on how insured events are defined, QBE’s approach is presented as a key point of differentiation.
AAMI Home & Contents Insurance: strong value with flood included as standard
AAMI Home & Contents Insurance is described as offering great value for money. It is presented as covering essential events such as fire, storm and theft damage, and it includes cover for floods as standard.
In the comparison, AAMI is also described as being cheaper than some insurers that do not include flood cover. That combination—flood included as standard plus a competitive premium—leads to the conclusion that it can be “more comprehensive and cheaper than a lot of other insurers on the market.”
AAMI won the 2025 award for Best Value Home and Contents Insurance. This recognition aligns with the stated emphasis on value, essential cover, and flood included as standard.
- Positioned as great value for money
- Covers essentials including fire, storm and theft damage
- Includes flood cover as standard
- Described as cheaper than some insurers that don’t include flood cover
- Won the 2025 award for Best Value Home and Contents Insurance
For consumers who want essential cover plus flood inclusion without necessarily paying more for it, AAMI is presented as a standout for value.
How scoring and awards were determined in the research
Comparisons can be difficult to interpret unless the methodology is clear. The research referenced here includes two key pieces of context.
First, the comparison notes that the features of more than 50 policies were reviewed and more than 500 quotes were obtained. This provides a broad base for assessing both what is covered and how pricing compares across providers.
Second, for the awards process described, 430 quotes were collected for 44 home and contents insurance policies. Quotes were obtained in every major state of Australia. Each insurer was scored based on 16 commonly covered features. The final score was based on a combination of features and price, with a 70/30 weighting split between features and price.
- Features assessed across more than 50 policies
- More than 500 quotes obtained as part of the research
- 430 quotes collected for 44 policies in the awards methodology
- Quotes obtained in every major state of Australia
- Insurers scored on 16 commonly covered features
- Final score weighted 70% features and 30% price
This kind of scoring approach tends to reward policies that are strong on coverage breadth and commonly expected features, while still accounting for premium competitiveness. In other words, it is not purely a “cheapest wins” approach, and it is not purely a “most features wins” approach either.
What the comparisons suggest about price versus coverage
Across the policies highlighted, a consistent theme is that price alone does not determine overall value. Some providers are described as among the cheapest while still providing cover comparable to more expensive insurers. Others may not be the cheapest, but are positioned as offering higher benefit limits or more thorough coverage at a reasonable price.
Several of the policies discussed also highlight flood cover as a differentiator. Both QBE and AAMI are noted for including flood as standard, and both are described as being cheaper than some providers that do not include flood cover. That comparison underscores a practical point for shoppers: checking whether flood is included as standard can matter, and it may not always come with a higher price.
Another key nuance is how insured events are defined. QBE’s approach—where flood is included within an insured event that also covers storm-related conditions—is described as potentially simplifying claims in situations where both storm and flood damage occur. The comparison notes that, with many insurers, storm and flood can be treated as separate insured events, which may lead to paying two excesses in some scenarios.
Choosing between these options
Based on the descriptions provided, each highlighted insurer has a slightly different “best fit” profile.
Budget Direct is positioned as a flexible, well-rounded choice that is typically cheap and recognised for customer satisfaction, while still delivering cover comparable to more expensive insurers.
Honey is positioned for those who want thorough coverage and generous benefit limits at a reasonable price, even if it is not the cheapest option available.
QBE stands out for including flood automatically within an insured event that also covers storm-related conditions, which is presented as simplifying claims in certain scenarios.
AAMI is positioned as strong value for money, covering essential events and including flood as standard, while also being cheaper than some insurers without flood cover.
Because the final scoring approach described weights features more heavily than price (70/30), the policies that perform well in this framework are likely those that combine competitive premiums with strong coverage across commonly included features. For consumers, that can be a useful lens: rather than focusing only on the headline premium, it encourages checking what is included, how generous benefit limits are, and whether important events such as flood are covered as standard.
Key takeaways
Home and contents insurance comparisons can be more meaningful when they are grounded in both pricing and features, and when the methodology is transparent. In the research referenced here, insurers were assessed using a large set of quotes across multiple states and were scored on commonly covered features, with the final score combining features and price.
Within that framework, Budget Direct, Honey, QBE and AAMI are highlighted for different strengths: overall balance and customer satisfaction recognition, generous benefit limits, flood inclusion structured to simplify claiming, and value for money with essential cover plus flood as standard. For homeowners comparing policies, these distinctions provide a practical starting point for weighing what matters most in their own circumstances.