Are you underinsured and don’t know it?
November 27, 2019
Underinsurance is a major problem for Australian households and businesses and many people just aren’t aware that you might have insufficient cover. The impacts of being underinsured can be devastating on your personal and business finances and lead to significant hardship and stress which you can avoid. Taking out less cover than you need might help you save on premiums, but it can end up costing your business or your family in the long term.
What exactly is underinsurance and what does that mean for you?
Most insurance policies that cover some form of asset will have an average provisioning clause, meaning you could be underinsured. This includes policies like Home, Contents & Landlords policies, Business Insurance & Business Income Protection policies.
Underinsurance can be devastating. The loss of a family home can have a significant impact on personal wealth, but when underinsurance occurs in a business environment the consequences can be extremely far-reaching. It a well-documented fact that businesses who underinsure often cannot rebuild after a major event & ultimately face closure.
☑️ Inability to rebuild your assets
☑️ Family burden
☑️ Social, economic, mental stress
How to avoid Underinsurance
☑️ Calculators: Talk to your Rivers Insurance Broker who has access to re-building calculators & can provide you with a report detailing a replacement or rebuilding cost so that you can make a more informed decision about your insurance sums insured. Here is a calculator to help you work out the cost to rebuild your house https://understandinsurance.com.au/calculator/building-calculator
☑️ Review yearly: Review your cover every year to ensure you are adequately covered in the event of an unexpected catastrophe occurring.
☑️ Resale value vs Re-building value: Understand that the real-estate value of your property is not the insurance rebuilding value. Consider the cost to rebuild your existing property.
☑️ Asset Register: An itemized asset register or inventory list with replacement values is a great way to understand the true value of possessions & to keep track of your contents sum insured.
☑️ Speak to the experts: Speak to people who live and breathe insurance and understand what you need and what should be included in your policy. This can save you thousands of dollars and a lot of unnecessary stress if anything is to happen.
Make sure you are not underinsured.
Book a FREE Insurance Consultation with one of our experienced insurance experts. Call us :
Brisbane : 07 3028 9494
Cairns : 07 4051 8422
Innisfail : 07 4061 1766