Don’t get Burnt by Underinsurance (Insurance)

It doesn’t matter whether you have a low or high income, insurance is a way to avoid the risk of losing your assets or finding yourself in financial difficulty

Each year, people risk their most precious possessions by not having adequate insurance. They take these risks believing, ’it won’t happen to me’. But recent bushfires and severe storms highlight that natural disasters can and do happen.

The Canberra bushfires alone left a trail of devastation costing over $350 million.1

Many people fall into the underinsurance trap by not updating their level of insurance to reflect renovations and improvements to their home. Others fail to take into account the ’hidden costs’ of rebuilding such as the removal of debris, architects, surveyors and legal fees and temporary accommodation. It’s important to check whether your insurer covers these additional benefits over and above your sum insured. Some insurers deduct these benefits (which can be tens of thousands of dollars) from the amount you have insured your home for, leaving you with much less money to rebuild.

Give your family the protection they deserve

Make sure that your home and contents are adequately covered by updating your insurance policy. This will avoid much of the hassle, frustration and potential financial hardship that underinsuring your home can cause.

No one ever plans to be underinsured. But many people fail to track the effect that buying new things can have on their insurance. The Saropa website lets you keep track of each item with immediate feedback on its effect on your insurance.

Using Saropa’s bank grade security, homeowners can catalogue their belongings with images, descriptions and serial numbers. A running tally linked to your insurance tells you if you have enough cover. Photos and documents are professionally stored and backed up. There is even a place to store emergency contacts and family medical histories - all available when you need it most. Weekly and monthly reminders keep you informed of every event happening in your home, insurance renewals, warranty expirations, birthdays, bills and anniversaries.

  1. Underinsurance and non-insurance statistics compiled by ICA (2002)

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