Supermarket giant Coles is now set to shake up Australia's home and contents insurance market, following the launch of its car insurance product.

According to the company, its home Insurance will give Australians a great value, quality product at a time when premiums from the traditional players continue to rise.

Industry figures show that Home Building's premiums have jumped 24 per cent from March 2008 to March 2010.

Coles Finance Director Tony Buffin said Coles was confident its new Home Insurance offer would be welcomed by Australians searching for better value.

"The response to our car insurance offer has exceeded our expectations, and over 70 percent of customers signing up are switching from the traditional brands."

"We think we'll see a similar strong response from customers concerned about the rising cost of their current home and contents insurance."

Mr Buffin said he believed that Coles Home Insurance offers customers a great quality product at a very competitive price, with features not offered by any other home insurance product in the market.

Coles Home Insurance policy holders will earn triple FlyBuys points on the first $500 they spend at Coles Supermarkets every month for a year.

Three choices of quality insurance cover are available both online and through a dedicated call centre - building and contents, building only and contents only insurance. In addition to the triple FlyBuys points offer, an additional 5 per cent discount is given to those who avail online.

Combining policies by taking out Building and Contents with Coles Insurance will allow saving 5 per cent off building insurance premium and 5 per cent off contents insurance premium.

Coles Home Insurance features cover for fire, flood, storms, water damage, theft, demolition, council fees and more, over and above the sum insured so there are no extra costs to cover hidden extras.