How do I calculate my building replacement cost?

Multiply your floor area (sqm) by the cost per sqm for your build quality: Basic $1,800-$2,200, Standard $2,200-$2,800, Premium $2,800-$3,500, Luxury $3,500-$5,000+. Then add 10-15% for demolition, temporary accommodation, and compliance with current building codes. You can also use free online calculators from major insurers or get a professional valuation.

Does home insurance cover flood?

Not always. Since 2012, insurers must clearly state whether flood is covered. Many policies in flood-prone areas either exclude flood, offer it as optional extra, or include it at a much higher premium. Check your PDS carefully for the definition of 'flood' vs 'storm damage' — they're different events with different cover.

What does contents insurance actually cover?

Contents insurance typically covers: furniture, appliances, electronics, clothing, linen, kitchenware, personal items, tools, and sometimes portable items taken outside the home. High-value items (over $2,000-$5,000 each) usually need to be listed individually. Contents in garages and sheds are also covered (check limits). Most policies are 'new for old' — meaning they pay to replace with a new item, not a secondhand one.

§ Tool · tier 1 · independent

Home & Contents Insurance Calculator.

Estimate the right level of home and contents insurance cover. Calculate your building replacement cost and contents value to avoid being underinsured.

CalculatorFree, no signupOn-deviceupd May 2026

Inputs

Your numbers

Property Type*

Property type affects building cover calculations

Building Size (sqm)*

180

Total floor area of the dwelling in square metres

Building Age*

Older buildings and heritage homes cost more to rebuild to current standards

Build Quality / Finishes*

Higher quality finishes increase the rebuild cost per sqm

Estimated Contents Value*

$80k

Total replacement cost of all belongings: furniture, electronics, clothing, appliances, etc.

High-Value Items (jewellery, art, etc.)

Items worth $2,000+ individually — these may need separate listing

Location Risk*

Location significantly affects premiums — flood and bushfire zones pay much more

Owner or Renter?*

Renters only need contents cover; landlords need building + landlord insurance

Math updates live as you change inputs · AI runs on submit

Awaiting inputs

Move the sliders or type in the form on the left — the math updates live as you go. Click Get AI verdict when you want a written analysis.

Most Australians are underinsured on their home by $50,000-$200,000 — meaning if your house burned down, the insurance payout wouldn't cover the full cost to rebuild. Building costs have surged 20-30% since 2020, and many policies haven't kept up. Contents insurance is also commonly underestimated — the average Australian household has $70,000-$100,000 worth of belongings. This calculator helps you estimate the correct level of cover so you're not caught short when you need it most.

§ Worked examples

Real-world scenarios

Typical 3-Bedroom House

A 2015-built, 180sqm, medium-quality 3-bedroom house in suburban Melbourne. Contents estimated at $85,000.

Building replacement estimate: 180sqm × $2,800/sqm = $504,000. Add demolition ($25,000), temporary accommodation, and council compliance ($30,000). Total building cover recommended: ~$560,000. Contents: $85,000. Annual premium estimate: $1,800-$2,500 (low-risk area).

Renter in Sydney Apartment

A couple renting a 2-bedroom apartment with furniture, electronics, clothing, and $8,000 in jewellery.

Contents estimate: furniture $12,000, electronics $6,000, clothing $10,000, kitchen $4,000, other $8,000 = $40,000 base. Plus jewellery $8,000 (listed separately). Contents cover: $48,000. Premium estimate: $400-$700/year. Without insurance, a theft or fire would cost them $48,000 out of pocket.

§ FAQ

Questions Australians ask

§ Glossary

Plain-English definitions

Building Insurance

Covers the physical structure of your home — walls, roof, floors, and fixed structures (built-in wardrobes, kitchen, bathroom). Does NOT cover the land or contents.

Contents Insurance

Covers personal belongings inside your home — furniture, electronics, clothing, appliances. Typically covers theft, fire, storm damage, and accidental damage (if included).

Replacement Cost

The cost to rebuild the home or replace contents with new items of similar quality. Different from market value or depreciated value.

Sum Insured vs Total Replacement

Sum insured: a fixed dollar limit on payouts. Total replacement: the insurer pays whatever it costs to rebuild/replace, with no cap. Total replacement offers more protection.

§ Pair it with

Related tools

Life Insurance Calculator

Include your home insurance in your overall protection plan.

Car Insurance Estimator

Bundle home and car insurance for potential discounts.

Home Loan Calculator

Building insurance is required by your mortgage lender.

How to use

01Select your property type and enter the building size.
02Choose the building age and quality of finishes.
03Estimate the total replacement value of your contents.
04Add any high-value items (jewellery, art, collections).
05Select your location risk level.
06Choose whether you need building, contents, or both.

Key info

Building replacement cost is NOT the same as market value. Replacement cost = what it costs to rebuild the structure from scratch.
Rebuild costs vary from $1,800/sqm (basic) to $4,000+/sqm (premium/architect). National average is ~$2,400-$3,000/sqm.
Contents insurance covers replacement value (what it costs to buy new) NOT current/secondhand value.
Policies typically have per-item limits ($2,000-$5,000) for unspecified items. High-value items need to be listed separately.

Pro tips

Walk through every room and photograph your belongings — this inventory is invaluable for claims and helps you estimate contents value accurately.
Update your building cover annually — construction costs are rising faster than inflation. What was adequate 3 years ago may be $100,000 short today.
List high-value items (jewellery, watches, cameras, instruments) individually on your policy — standard per-item limits often don't cover these.
Consider 'total replacement' or 'new for old' cover rather than 'market value' — it ensures you can replace worn items with new ones.

Avoid these

Using the property's market value as the building cover — market value includes land. Rebuild cost is JUST the structure and can be higher or lower than market value.
Underestimating contents value — add up every room: bedroom furniture $5,000-$15,000, kitchen appliances $3,000-$8,000, electronics $2,000-$10,000, clothing $5,000-$15,000 per person.
Not checking flood cover — many 'comprehensive' policies DON'T include flood. In flood-prone areas, it's either excluded or very expensive.
Choosing the cheapest policy without reading what's excluded — a $200 saving on premium means nothing if a $200,000 claim is denied.

Disclaimer: Estimates only. Interest rates, fees and policies change frequently. Always verify with lenders directly. General information, not personal financial advice.

Last updated · May 2026