Under insurance is the result of nominating a value for an asset such as your home that is too low to actually replace it in the event that it is lost or damaged. In 2005 the Australian Securities and Investments Commission (ASIC) estimated that 70% of Australian homes were under-insured. Should the worst happen and an under-insured asset be lost, there is no capacity under the insurance policy to replace the asset.
Under Insurance is a major Problem in Australia, in fact we are one of the most under-insured out of all the developed world. Up to 81% of all consumers in Australia are under insured which means their sums insured are out by 10% or more. This can become an issue when insurers reduce the amount of your claim due to you have inaccurate sums insured.
The Australian securities and investment commission have narrowed this down to a specific figure for people’s home insurance. According to their research in 2005 they estimate that up to 70% of all Australian home are currently under insured.
But how can you make sure that you are not one of the 70%. Well we have the Cordell Building Sum Insured Calculator below to help you ensure your not going to be left short in the event of a claim. It only takes a few minutes and will ensure your building sum insured is more accurate than just “having a guess” when you get a quote.
Contents that you have inside your home change on a regular basis. New purchases, TV’s, clothes, furniture and that’s before you even take into account the rising cost to replace these items every year.
When was the last time you reviewed your sum insured. I don’t just mean increasing it each year by a couple of thousand because “that’s about right” I mean doing a walk through of your house and coming to the realisation of how much it would be to replace all of your contents if you lost everything.
If you have ANY doubts as to you current sum insured do yourself a favour and utilise our free of charge Contents Sum Insured Calculator.
Commercial or Strata Building Insurance
All Trades Cover also provide contact for a Commercial Quantity Surveyor who can help you ensure the replacement value on your business property is adequate. This is extremely important due to most Commercial Building and Strata Insurance policies being subject to a co insurance clause which can reduce the amount of they will payout significantly in the event of a claim should you not have an accurate replacement value.
Should your sum insured be out by 50% then the insurer would only payout 50% of what you have insured the property for. For example:
Insurers Payout would only be 50% of your sum insured which is $250,000, short of what you need to replace your building by $750,000
Washington Brown have offices in every state of Australia and can assist you with determining the replacement cost for your commercial building.