The risk of underinsurance
What is underinsurance?
Underinsurance occurs when an individual or business does not have enough insurance coverage to fully protect against potential losses. This gap can leave policyholders vulnerable following natural disasters and other insured events. Essentially, underinsurance means that, in the event of a claim, the compensation received may not be sufficient to cover the full extent of the loss.
Common causes for underinsurance
Below are some of the common causes that have been identified by insurance brokers and insurers:
Protect Yourself
To ensure you have adequate coverage, regularly review your insurance policies, assess your current needs, and consult with insurance professionals.
Taking these steps can help safeguard your financial well-being and provide peace of mind.
We have partnered with MCG Quantity Surveyors, who offer Insurance Replacement Cost Plan (IRCP) reports, which provide accurate estimates of replacement costs to ensure that the property is adequately insured. An IRCP report will include the often-neglected factors like demolition, design consultant fees, council fees and cost escalation.
Click below to find our more, with reports starting from $660 including GST for properties under $10,000,000: