Will your insurance cover your rebuild in a catastrophe?
March 24, 2020
It is heartbreaking to see our fellow aussies suffer during times of severe weather and catastrophic events. It is even more heartbreaking to hear that people don’t have enough insurance to cover the rebuild of their home.
It is really important to take into account several other factors that you might not have thought of. These are:
- Current relevant Laws
- Replacement Material Costs
- Removal of Debris
Current Relevant Laws: Following recent catastrophic fires & storm damage two factors in particular have led to increased construction costs. In ‘fire risk’ areas, new building regulations require different (more expensive) building materials which are more resistant to fire
Following storm damage, it is common to find that the roofing cannot be rebuilt as is and will require higher specifications.
Replacement Material Costs: Both local and imported building materials have risen in cost due to demand after the various weather events. As such, insured clients have experienced first-hand the impact of not ‘setting’ an adequate Sum Insured only to find that they were sometimes grossly underinsured, and as such, received insufficient funds to rebuild their homes. Consideration also needs to be given to both the a) extra time and b) extra costs related to imported materials.
Removal of Debri: There will be costs associated with removing debri and clearing your building site and these need to be considered in your costs to rebuild
Use this calculator to estimate what level of cover you might need https://sumsure.cordell.com.au/#/products/7/profiles/112
Your Rivers insurance broker can advise on policy coverage and assist to determine the sum insured. Following your broker’s advice will result in better outcomes during the claims process.