Majority Of Australians Underinsured When It Comes To Home And Contents

Post by Sharat on October 14, 2017 · Under insurance · Comments Off on Majority Of Australians Underinsured When It Comes To Home And Contents 

According to a recent study by a market research firm, an astonishing 83 per cent of Australians are underinsured when it comes to their home and contents insurance. This is a real cause for concern because a recent Climate Change report has warned that many parts of the country are experiencing a rise in extreme fire weather.  The main reason most Aussies are underinsured is because of failure to update policies and the increasing cost of full cover. The real issue however is the financial burden homeowners may face if they find that something goes wrong, particularly if there is a bush fire.

The cost of rebuilding a home

Experts warn that despite sounding alarmist, they are extremely worries about the level of housing underinsurance Australia. Many people simply do not understand how much it will cost them to rebuilt their property because they lack expertise. They may well look that the sale price and infer that their property is worth $400,000 on the market, except in reality it may cost then $500,000 to rebuild if not more.

Review your insurance policy

So, before the intense heat of the summer hits, it’s really a good idea to take a fresh look at your home insurance policy and check its limits to see whether you have adequate coverage. Here is what you should be doing. Firstly, review your existing policy and check the sum insured limits for both home and contents. Secondly speak with your local council and find out whether there any risks you may be unaware of and how likely they are to occur. Thirdly, make your household adjustments such as enhancing your security system or cleaning out gutters and finally contact your insurer to adjust your policy.

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