Under insurance is the result of nominating a value for an asset such as your home that is too low to actually replace it in the event that it is lost or damaged. In 2005 the Australian Securities and Investments Commission (ASIC) estimated that 70% of Australian homes were under-insured. Should the worst happen and an under-insured asset be lost, there is no capacity under the insurance policy to replace the asset.
Under Insurance is a major Problem in Australia, in fact we are one of the most under-insured out of all the developed world. Up to 81% of all consumers in Australia are under insured which means their sums insured are out by 10% or more. This can become an issue when insurers reduce the amount of your claim due to you have inaccurate sums insured.
The Australian securities and investment commission have narrowed this down to a specific figure for people’s home insurance. According to their research in 2005 they estimate that up to 70% of all Australian home are currently under insured.
But how can you make sure that you are not one of the 70%. Well we have the Cordell Building Sum Insured Calculator below to help you ensure your not going to be left short in the event of a claim. It only takes a few minutes and will ensure your building sum insured is more accurate than just “having a guess”.