Underinsurance of home building and contents in Australia is a huge problem!
A common misconception is that people are purposefully underinsured. Interestingly our research has in fact revealed quite the opposite.
The real facts are that most people in Australia are only underinsured because until now there has not been a quick and easy way for people to estimate the true replacement cost of their home and contents assets.
The problem with someone being underinsured is that nobody wins.
The policyholder loses because in the event of a major disaster, such as a fire when you have to replace your home building and contents, quite simply you will not have enough money to buy what you had previously.
Insurance companies also lose because firstly they are not collecting the premium they should be to cover the risk involved. Secondly when someone makes a claim, they come off badly in the eyes of there policyholders when you then have to tell them that there is not enough cover to enable them to replace all their home contents usually resulting in a very unhappy customer which often can be a PR disaster!!!
Correct insurance cover gives you a win win situation!!!
As the policyholder when you are correctly insured you win because you get the peace of mind knowing that if something happens you will get fully compensated for all your home and contents assets. The insurance company also wins because by collecting the necessary premium revenue to enable them to fully compensate policyholders in the event of a claim.