Underinsurance means that the cover you’ve purchased doesn’t adequately cover the costs of what it would take to rebuild or replace the home and contents if it was lost in an insured event. Here’s how to tell if you are one of the many Australians who are underinsured.
How much cover do I have?
Is your policy up for renewal? Now’s a good time to:
Review your policy – inform your insurer if you’ve made additions to the home or new purchases which may change the overall value of your home and contents.
Adjusting your premium – keeping your premiums low shouldn’t be your priority. Properly calculate how much it would cost to replace your home and your contents to make sure you’re not underinsured.
How much should you be insured for?
Your insurance policy should adequately cover the cost of rebuilding your home, as well as the value of the items inside your home. To figure out this sum you could list out the contents of each room and calculate what it would cost to replace these. Need help? Use the CGU Home & Contents Calculators to help you calculate the replacements costs needed.
What are the limitations?
Make sure you read and understand what is and isn’t covered in the policy you’ve purchased. To find out more about CGU insurance policy limits visit CGU.
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Insurance issued by Insurance Australia Limited ABN 11 000 016 722 trading as CGU Insurance. Any advice is general only. Consider the relevant PDS available from cgu.com.au to see if a product is right for you.
Important note: This information is of a general nature and is not intended to be relied on by you as advice in any particular matter. You should contact us at Defence Bank to discuss how this information may apply to your circumstances.
