Is your home under insured?
RECENT bushfires in Esperance and Perth’s eastern suburbs have highlighted the need for home owners to adequately insure their properties, according to O'Rourke Realty investments principal Rory O'Rourke.
He said an Australian Securities and Investments Commission (ASIC) report contained surveys revealing between 27 per cent and 81 per cent of home owners were under insured by 10 per cent or more.
It also highlighted research that found 24 per cent of consumers did not increase their insurance following renovations costing between $20,000 and $60,000.
Mr O’Rourke said many people underestimated the cost of repairing or rebuilding their homes because construction costs had risen sharply over the past decade.
“For most people, their residential home is their biggest financial asset and insurance is critical, especially for those who may own several properties such as investors,” Mr O’Rourke said.
“Whether it is the threat of bush fires, storm damage or accidental fires in the home, property owners should check that they have adequate insurance cover.
“The danger of under insurance is particularly high for first-home buyers, who have little equity in their homes and may try to save funds by limiting their level of insurance.
“It is a traumatic enough experience to have your home destroyed by a fire or storm. However, it is even more traumatic if you don’t have the necessary funds to rebuild the property due to lack of insurance.”
Mr O’Rouke said a leaflet at the Insurance Council of Australia website provided tips on how to avoid under insurance. It can be downloaded at http://tinyurl.com/pa43yb
Check out our Insurance listing for services local to you.
-Originally published in our sister publication Western Residential
