We all have vivid memories of the shocking devastation wrought by last summer's bushfires. These tragic events left many property owners reeling as they realised that the cost to rebuild the homes lost was not adequately covered by their insurance, or that they were not insured at all. Once you can see the flames, it's too late to call your insurer.
With summer approaching, now is the time to review your insurance arrangements and make sure you are properly covered.
Is your insurance current?
Are your sums insured adequate?
Have you taken into account the true cost to rebuild your property?
IAG have released an excellent guide to Bushfire Facts - download it here
Q “How much should I insure my property for?”
We are often asked what a "typical" sum insured is. There is no such thing. That’s a question only you can answer, and in fact it would be a serious compliance breach for any broker to suggest a sum insured to you. Determining sums insured can be confusing, so here are some tools to help*.
It's not just about what a builder would charge you to replace the building... there are other potential costs involved:
Clean-up of the site
Removal of debris
New building codes that may apply (BAL ratings)
These additional factors can add tens of thousands of dollars to the cost of rebuilding, which you may not have considered in your insurance sum insured.
Typical building replacement costs are provided by Reed Business Information Pty Ltd (A.B.N. 80 132 719 861) trading as Cordell Information (‘Cordell’) and typical building contents replacement costs are provided by Sum Insured Pty Ltd (A.B.N. 55 947 630 521 (‘SI’) trading as Home Contents. Whilst every care is taken to ensure the accuracy of the information as a guide for costing, no responsibility is accepted by either Cordell, SI, Steadfast or the Steadfast Broker for its accuracy. Please check with an Architect, Builder, Quantity Surveyor, Valuer or other suitably qualified professional for an accurate estimate. Neither Steadfast nor the Steadfast Broker takes any responsibility for the costs provided by Cordell or SI nor any liability for the accuracy of or reliance upon or use of, the costs. To the fullest extent permitted by law, Cordell, SI, Steadfast and the Steadfast Broker expressly disclaim all warranties, express or implied, including, but not limited to, the implied warranty of fitness for a particular purpose. Cordell, SI, Steadfast and the Steadfast Broker do not warrant or make any representations regarding the use or the results of the use of the information provided in terms of its correctness, accuracy, reliability, or otherwise.
This information is general advice only, please consider the PDS.
Refer to the FSG on our website for our services and remuneration details.
Need to know more? Contact Ceneta Insurance Services
AR 332815 | Authorised Representative of PSC Connect Pty Ltd
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