Sum Insured has released the 2026 Australian Residential Contents Index (RCI), revealing important insights into residential contents replacement costs across Australia.
The headline finding: home contents replacement costs have increased by 18% since 2020, while Australian CPI increased by 4.6% over the 12 months to March 2026, compared with a 1.5% increase in contents replacement costs over the 12 months to June 2026.
The Residential Contents Index is a specialised tool designed to track the changing costs of replacing home contents. Unlike the Consumer Price Index (CPI), which covers a broad range of goods and services, the RCI focuses specifically on items typically covered by home contents insurance policies.
The 2026 Australian Residential Contents Index highlights a growing divergence between headline inflation and household contents replacement costs. While Australian CPI increased by 4.6% during 2026, contents replacement costs increased by only 1.5%, reinforcing the importance of using replacement cost specific data when assessing contents portfolios.
The RCI is based on a comprehensive model of a typical Australian home comprising:
The index tracks replacement costs across three household standards:
Average Standard
Functional, mass-market household contents typically found in mainstream Australian homes.
Quality Standard
Higher-quality branded contents with improved durability, finish and specifications.
Prestige Standard
Premium and luxury household contents, including designer furnishings, high-end electronics and prestige household goods.
For insurers and brokers, the RCI provides:
The 2026 report identifies categories experiencing upward pressure as:
And categories experiencing stable or downward pressure as:
This category-specific analysis can help insurance professionals tailor their approach to different client segments.
In 2027, Sum Insured will expand its replacement cost research capability with the launch of the Residential Build Index, developed alongside CIRCA Build.
The new index will focus on residential building replacement costs and construction inflation, analysing:
Together, the Residential Contents Index and Residential Build Index will provide a more complete view of residential replacement cost adequacy across both building and contents portfolios.
The complete 2026 Australian Residential Contents Index report includes:
The 2026 Australian Residential Contents Index highlights the importance of using replacement cost specific data when assessing household contents exposure. As the gap between CPI and contents replacement costs continues to widen, insurers can make more informed decisions around portfolio indexation, sum insured adequacy and customer outcomes.