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Would you walk in the rain with no umbrella? Probably not. Think of home insurance like an umbrella for your home. Maybe you’ve avoided insurance because of the cost. But here are some tips on how to reduce your premium to make it more affordable.

Give me the main points

  • Insurance can be affordable and there are smart ways to reduce your premium.
  • Paying a higher excess means you’ll pay less for your insurance premium.
  • Avoid additional cost by insuring your property for their appropriate replacement value and not to overestimate.
  • Your neighbourhood’s risk of burglary affects your premium.

Not all insurance policies are the same, though you’ll find most use similar jargon. Allianz, our general insurance underwriters, give some tips on how to reduce your premium.

1. Increase your excess amount

An excess is the contribution you are required to pay towards a claim you make on your insurance policy.

Insurance policies have a minimum excess amount. But if you choose to pay a higher excess, then your insurance premium may be reduced.


The insurer pays you the claim amount less the excess amount. For instance, if you claim $10,000 of stolen goods, and your excess is $500, then you’ll receive $9,500.

Some small amounts may not be worth claiming because the excess is higher than the claim amount. Like if you crack the glass on the sliding door. It might cost $100 to repair so it’s not worth paying the excess.

2. Value your contents accurately

You don’t want to undervalue or overvalue your contents. Insuring them for less than the value means you could be left out of pocket in the event of a claim. Over-estimating means you’ll pay a higher insurance premium for cover that you don’t need.


Create a spreadsheet with all your contents and their values to help you keep track of them.

3. Install an alarm

Depending on the suburb you live in, it may be mandatory for your home to be fitted with an alarm in order to get insurance. Even if this isn’t the case, alarms can deter burglars and can reduce your contents premium. These days there are alarms to suit all budgets.


Consider additional safety measures around the home to help protect your valuables.

4. Research your area

You’ve fallen in love with a beautiful tree-lined street and you want to move in now. But this doesn’t mean it’s a low-risk neighbourhood. It could have a lot of break-ins and car thefts.

Call your insurer for a quote because they’ll know if it’s been rated it as a high-risk area or not.


Your premium increases when your house is within a high break-in zone or is at risk of bushfires etc.

5. Combine policies

Some insurers offer multi-policy discounts if you bundle your insurance into one package. So you might choose to take out house, contents, and also car insurance with the same insurer.

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