More than 80%* of Australians are underinsured for their home and contents. This means if they lose everything in a fire or flood, the amount of cover they have will not be enough to replace everything in their home.
Tips for preventing underinsurance
You may be surprised at how much prices can increase, even in one year. Replacing the items in your home might cost more than you think.
Statistics show that many insurance policyholders are underinsured. Consider the following to see if you’re at risk:
- Has it been more than a year since you reviewed your insurance policy or updated your cover?
- Have you recently renovated your home or improved its value with an extension?
- Have you made any significant purchases such as a pool, shed or patio since your last policy update?
- Have you bought furniture or valuable items like a home theatre system or jewellery?
- Do you live in an area where building costs rise quickly?
- Flood, earthquake and storm cover.
- Fire cover (natural and accidental).
- New-for-old cover on home contents, regardless of age.
- Cover for furniture, carpets, household goods, appliances and gardening tools.
- Cover for clothing, jewellery and precious items.
- Cover for tools of trade.
- Cover for fences.
- Understand your policy and the level and value of cover it provides.
- Consider any building renovations, improvements or extensions to your home; these can significantly increase its value.
- Consider any purchases you’ve made since your last renewal, including electronic equipment, furniture and personal valuables like jewellery that you take out of your home.
- Check your policy sum insured limits. For added peace of mind, consider RAC Personal Valuables Insurance for belongings that might not be covered under standard contents policies or require additional cover.
- Use our contents calculator or buildings calculator to estimate the value of your home and its contents.
- Should you need to amend your cover, call our friendly staff on 13 17 03.
Need to update your cover? Call us on 13 17 03.