Are you adequately insured?
Please note the information in this article is general in nature and does not take into account your objectives, financial situation or needs. You should consider obtaining independent advice before making any decisions based on this article.
If you’re like many Aussies, you guess the value of your home contents. Underinsurance is unfortunately common in Australia, making it difficult for homeowners to rebuild their home or replace their belongings to the same standard following an insurance claim.
Using an online calculator is an easy way to estimate the level of cover you require. If the amount the calculator shows is different to the sum insured for your buildings or contents, check that the property details in the calculator correctly reflect your home and contents and consider reviewing all your assets in greater detail by carrying out a room-by-room inventory.
Also consider the value of your home and the cost to replace it. History shows that rebuilding costs increase when there is a high level of demand, so check you have an adequate level of cover before a disaster strikes.
Insurance checklist:
- Calculate the value to replace your home and contents.
- Make an inventory of all your belongings – this will also help if you need to make a claim.
- Review high value items such as artwork, jewellery, laptops and cameras and consider if they should be specified on your policy - and take photos of them to assist when making a claim.
- Check your cover regularly – particularly if you have done home renovations or updated your possessions.
- Be aware of your policy limits and excess payable.
- Understand your insurance cover – not all policies are the same.
This article has been prepared by TIO. Information contained in this article is accurate as at 1st August 2023 and may be subject to change. In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way.
Any opinions expressed constitute our views at the time of issue and are subject to change. Neither TIO, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.
