Survey of metropolitan home insurance costs

The cost of home insurance in Perth can vary by up to $114 a year, a Consumer Affairs Price Check survey has shown.

And contents insurance premiums can vary by up to $90, Consumer Affairs Minister Yvonne Henderson said today.

"In the country, the differences are even greater," Mrs Henderson said.

"To insure $20,000 worth of goods in Wyndham costs between $97.44 and $313.50 - a difference of $216.06.

"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 home and contents insurance vary greatly. But consumers need to be aware that these variations can be influenced by differences in the cover provided, so check your policy before making a decision to switch.

"The cheapest insurance for a three-bedroom double brick home valued at $80,000 was $130, from Western Underwriters. The dearest was $197, from Colonial Mutual. But Colonial Mutual's cover includes flood damage, while Western Underwriters does not.

"For $40,000 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 damage insurance varies greatly. Some policies do not cover damage caused if you leave a window or door open during a storm," 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."