How would you feel if you paid for home and contents cover every year, only to find out you’re underinsured?
Underinsurance is when your cover doesn’t match up to the estimated cost of repairing/replacing your home and possessions. As a result, you could end up paying for any additional costs not covered by your insurer out of your own pocket, which could be in the thousands.
Here are 5 tips to help you avoid being underinsured:
Get a property evaluation
Property values fluctuate due to many different factors. It’s worth getting a professional evaluation so you can get an up-to-date estimate of how much cover you need.
Inform your insurer of any changes
Room extensions, swimming pools or even a new garage door could add value to your home. But if your insurance stays the same, it might not cover your latest home improvements.
Take inventory of your possessions
It’s easy to accumulate items over the years, so it’s worth taking stock of the essential or other valuable possessions you want to be covered. This will affect the level of cover you need and the premium you pay.
Consider covering more expensive items individually
Made a big purchase recently? It’s worth getting cover for specific items that are worth more than your current limit. Otherwise, the cost of replacing it could come out of your pocket.
Seek a policy with a sum insured safeguard
Taking out cover with a sum insured safeguard can help put your mind at ease, as it may cover you for up to 30% more than your specified limit. Thankfully, looking for a policy only takes minutes.
Through our insurance broker partner SHC Insurance Brokers, we offer a comprehensive insurance broker service where you can compare various policies side-by-side, making the process straightforward and transparent. See why it pays to compare today!
Your Choice Mortgage Brokers Pty Ltd ATF Halo Innovation Trust trading as Heart Mortgage Services - Australian Credit Licence 38643.
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