Get your insurance right

A typical Australian house can cost over $200,000 to replace, but the typical Australian householder will have only $150,000 in insurance cover.

The key message from research shows most Australians are seriously under-insured. One survey has found 81 percent of households are under-insured by an average of 34 percent. Another suggests 24 percent do not increase their insurance cover following major renovations.

ASIC has investigated the level and causes of under-insurance in their report Getting Home Insurance Right. The report presents findings and recommendations on under-insurance and the appendices provide additional information on web-based calculators, a comparison of premiums and sum insured and more.

Get this report free of charge from the ASIC website

Keep the following points in mind when it comes to insuring your properties:

1. Update your insurance regularly - most property owners are under-insured because they arranged their insurance five or ten years ago and have not adjusted it to reflect rising construction costs.
2. Don't forget to include sundry items such as groceries, clothing and equipment like washing machines.
3. Accurately calculate the replacement cost of the property and everything in it.

Don't risk being under-insured. Talk to a good broker or insurance representative who can cut through the maze of possibilities and advise you on the most suitable policies.