What is underinsurance?
Underinsurance is when your home and contents is insured for less than the value of replacing them. If you have to make a claim, your insurer can only pay out the amount you are insured for, leaving you to cover the shortfall.
It’s important to regularly review the value of your home and contents, particularly if you have renovated or extended your property. Even if you purchase new whitegoods for your home, make sure you adjust your level of Home & Contents Insurance to reflect the increased value of your contents. Many people forget to do this and end up underinsured. All you need to do is contact your insurer and adjust the sum you are insured for.
Remember too, that you can become underinsured over time as you accumulate more personal possessions—for example, jewellery, artwork, computers and other small electronic devices may not be covered under your current policy.
If you are unsure about how much you should insure your property for, use our handy online Building Calculator and Contents Calculator at b-e.com.au/home-and-contents-insurance
Things you need to know:
This is general information only and does not take into account your personal circumstances. Before acquiring any insurance product, you should check if it is suitable for your needs having regard to your circumstances and the applicable Product Disclosure Statement (PDS).