Insurance Articles
Is your home underinsured?
Posted by admin - 01/04/09 at 01:04:25 pmWhat is underinsurance?
Recent surveys in Australia have found that between 27% and 81% of home owners were underinsured. This means that their home is insured for 90% or less of the cost of rebuilding it. Between 7.5% and 59% of owners had only insured their home for 70% or less of the cost of rebuilding.
There are a number of reasons why you might not have enough home insurance cover:
* It can be hard to know what it would cost to rebuild your home, and you might not know how to check the cost of rebuilding
* You might have had your insurance policy for 5 years, 10 years or more. You might not be sure how much the cover has been increased each year, or whether you still have enough cover.
* If you have completed renovations recently you need to increase your level of cover, if you haven’t already done so.
TIP! Even if you think you have enough insurance, you should check your level of cover, particularly if you haven’t increased it for a number of years.
You might be aware that you don’t have enough cover, but you can’t afford to pay more for your home insurance. You might be surprised—just because house prices have been going up doesn’t mean your insurance premium will have increased at the same rate.
Source: www.asic.gov.au
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