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Being underinsured could cost you dearly

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.

The information contained herein is of a general nature only and does not constitute advice. You should not act on any information without considering your personal needs, circumstances and objectives. We recommend you obtain professional financial advice specific to your circumstances. The views expressed here are not ours. While the information contained in this article may contain or be based on information obtained from sources believed to be reliable, it may not have been independently verified. Where information contained in this publication contains material provided directly by third parties it is given in good faith and has been derived from sources believed to be accurate at its issue date. To the maximum extent permitted by law: no guarantee, representation or warranty is given that any information or advice in this publication is complete, accurate, up to date or fit for any purpose; and no party or associated entities as mentioned is in any way liable to you (including for negligence) in respect of any reliance upon such information. This article may also contain links to websites operated by third parties who are not related to us. These links are provided for convenience only and do not represent any endorsement or approval by us.

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