What does underinsurance mean? How to know if you're underinsured
Underinsurance is a major problem in Australia. If you’re underinsured, you may be at risk of financial loss when an unexpected insurance event occurs such as fire, storm and theft, and you need to rebuild your home or replace contents. Here’s how to understand if you’re underinsured, and what to do about it.
The nasty thing about underinsurance is that you don’t often know you’re underinsured until it’s too late, potentially causing a major financial and emotional headache when you are already under great stress.
Victims of major events such as fire, storm damage or theft might have taken out what was the appropriate level of home and contents insurance coverage at the time but have not regularly reviewed their level of insurance coverage since, only to find out they’re underinsured when they need their home and contents insurance policy the most.