Survey of home insurance costs in country areas

The cost of home insurance can vary from $130 to $995 around Western Australia, a Consumer Affairs Price Check survey has shown.

The $995 quote was made on a double-brick, three-bedroom house in Newman, the $130 quote on a similar house in Perth, by different insurers.

Consumer Affairs Minister Yvonne Henderson said today that house and contents insurance premiums varied considerably, even in the same town.

"But the differences are greater in the country," Mrs Henderson said.

"To insure $20,000 worth of goods in Wyndham costs between $97.44 and $313.30 - a difference of $215.86.

"Insuring a three-bedroom brick house in Newman will cost between $184.27 and $995.60 - a difference of $811.33.

"The survey reveals that premiums for houses and contents insurance vary greatly. But consumers need to be aware that these variations reflect differences in the cover provided, so check your policy before making a decision to switch.

The price check survey covered seven different country centres - Albany, Meekatharra, Geraldton, Kalgoorlie, Wyndham, Port Hedland, Newman.

A full-page newspaper advertisement tomorrow will reproduce the results for three representative centres. The other results are available by sending in the coupon.

"The cheapest insurance for a three-bedroom double brick home valued at $80,000 in the Perth area was $130, from Western Underwriters," Mrs Henderson said.

"The dearest was $197, from Colonial Mutual. But Colonial Mutual's cover includes flood damage, while Western Underwriters does not.

"For $30,000 worth of contents insurance for a standard four-bedroom, double-brick house, Western Underwriters again offered the cheapest premiums at $140 and VACC the dearest at $230."

The price check survey covered 15 insurance companies, which quoted on insuring standard three and four-bedroom, double-brick homes.

Mrs Henderson said few of the companies surveyed provided cover for flood as part of their standard policy.

"Also, the extent of storm insurance damage varies greatly. Some policies do not cover damage caused if you leave a window or door open during a storm or from surface run-off," she said.

"The situation with excesses is another area where the consumer should check with the insurance company.

"Some companies require an excess of up to $200 when you make a claim. Some will reduce the excess if you pay a higher premium, or they will reduce the premium if the consumer is prepared to pay a higher excess.

"Finally, it may cost consumers more if they are not covered for house and contents by the same insurer."