How to avoid undervaluing your personal possessions
It can be difficult to keep track of the value of the items we buy. This leads many of us to undervalue our personal possessions.
The Australian Bureau of Statistics found that the average Australian home has $61,000 worth of content. That’s a lot to lose, particularly if it was lost all at once, like in a house fire.
When purchasing insurance, it can be challenging to know how much to insure your possessions for. But the fact is that our personal possessions can be worth a lot when you add them all up. While many people do hold an insurance policy, the vast majority are underinsured. Underinsurance can occur with any insurance, but it's particularly common when it comes to ensuring our possessions.
According to the Insurance Council of Australia, it’s a big issue. They found that more than four in five Australian homeowners and renters (83 per cent) are underinsured for their home and contents, and seven per cent of homeowners and 63 per cent of renters don’t have contents insurance.
A third of us risk underinsurance by not updating our contents policy to cover new possessions.