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ISCOVER
Staff Reporter
A new survey has revealed that the majority of brokers fear their clients are dangerously under-insured.
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According to the latest Market Insights by 1300HomeLoan, 39 per cent of brokers believe their clients are underinsured by 50-75 per cent.
A further 27 per cent believe there are underinsured by 20-50 per cent, 22 per cent by 75-100 per cent, and 12 per cent by 0-20 per cent.
1300HomeLoan managing director John Kolenda said that with the bushfire season approaching homeowners needed to make sure they had enough cover to rebuild their homes in the event of total loss.
“Whenever there is a bushfire that destroys homes we make the sad discovery that many people who thought they were properly insured do not actually have enough money to rebuild their house,” Mr Kolenda said.
“Some people deliberately underinsure to save money but there are many more who find themselves accidentally exposed because the price of construction has increased or they have done renovations but not got around to increasing their insurance level.
“The only way to avoid this risk and gain real peace of mind is to review your insurance level every year and if you don’t feel qualified to judge the appropriate amount seek expert help.”
