Underinsurance fears for cyclone-prone regions
Queensland underwriting agency Sure Insurance has warned of underinsurance fears for cyclone-prone regions after comparing levels of insurance cover in different parts of the state.
The insurance provider’s home and contents insurance alert is delivered as the Bureau of Meteorology forecast the possibility of three cyclone events this season with one cyclone likely to cross the coast.
Bradley Heath, Managing Director of Sure Insurance said: “We are appealing to Townsville and far north Queensland householders to check their current home
building and contents sum-insured as it’s critically important to avoid underinsurance and have in place sufficient financial capacity to completely rebuild their home and replace the entire contents should a total loss occur.”
It says the average home building sum insured in non-cyclone areas of regional Queensland is about $532,000 and for contents it is a little over $80,000. Across Cairns, Townsville and Mackay, the figure for home building is $513,000 and for contents it is $72,000.
Sure Insurance MD Bradley Heath says people may be surprised by how much building costs have risen in recent years – especially the cost of a rebuild – and by the total value of their contents.
“We are appealing to Cairns and Far North Queensland householders to check their current home building and contents sum-insured, as it’s critically important to avoid underinsurance and have in place sufficient financial capacity to completely rebuild their home and replace the entire contents should a total loss occur,” he said.
Debris removal, planning, engineering and local government fees, and temporary accommodation are among factors that must be considered, Sure Insurance says.
The Bureau of Meteorology’s October forecast says this tropical cyclone season, running from November 1 to April 30, is likely to be in line with the long-term average in terms of number of storms, while the chance of severe cyclones is higher due to warmer ocean temperatures.
“Householders may be surprised to learn how much regional building and construction costs have risen over the past several years, especially the cost of a complete home rebuild, and just what the total value is of the entire contents of their home.”
“It’s also important to be aware that should a customer’s home become unliveable after an insured event and temporary accommodation is required – Sure Insurance provides an accommodation benefit for 18-months up to a maximum of 10 percent of the total building sum insured.”
“We do work closely with customers taking into account individual circumstances and choices for temporary accommodation,” said Mr Heath.
Checking an adequate building sum-insured only takes a few minutes with the user-friendly sum insured calculator.
A guide to checking home contents sum-insured is also available at the Insurance Council of Australia (ICA) website.
“We want to see North Queenslanders well educated about their household insurance to ensure they are able to make informed decisions about their cover, and are fully prepared for possible severe weather and cyclone events – we think that’s only fair.”
Article courtesy of Sure Insurance>https://sure-insurance.com.au/news/northern-queenslanders-urged-to-check-home-insurance-levels-as-severe-tropical-weather-builds/
