Underinsurance is a serious problem for Australian home owners and is one of a number of features policyholders should check regularly. The Insurance Council of Australia estimates that up to 70% of Australians were under insured.
One major insurance provider (AAMI) suggests that the average level of underinsurance is $85,000 whilst older Australian homes were underinsured by $131,000 on average.
Here are some insurance tips to ensure you avoid being underinsured:
- Review your insured value at least annually.
- Building prices can rise rapidly so make sure your home can be replaced by the agreed insured value.
- When taking out a new policy or reviewing an existing one, make sure you understand what features your policy contains and what the insurance covers.
Being underinsured can cause financial heartache – never take your policy for granted.