But apart from making sure your insurance covers you for everything you need it to, it’s also important to make sure that you’re covered for the right amount.
According to the Australian Securities and Investments Commission (ASIC) there are 7.5% to 59% of homeowners who are insured for only 70% or less of the cost of their property. This means that when it comes time to build again, a lot of insurance holders still won’t have enough money to cover them for their losses, and allow them to rebuild their home as it was before the damage.
But how do you know if you are insured for the right amount? Unfortunately it is up to the insurance policy holder to pick an insurance figure and most of us don’t have a clue how much our house will cost to rebuild.
Most insurance companies should have a rebuilding calculator on their website, so take advantage of these to help establish the value of your home. For more tips and advice on figuring out the cost to rebuild your home check the ASIC website.
Once you have figured out the cost to cover your home make sure you check it periodically and keep your insurance up-to-date! Inflation will cause your rebuilding and replacing costs to go up over time, so make sure you are always covered for the right amount.
If you are unsure about your policy and what you are covered for then I would recommend talking to your insurance provider today!