People who don’t have insurance or who are underinsured find it very difficult to rebuild their lives without it. Make sure to check your policy every year to ensure that your policy provides you with enough cover to rebuild to a standard that you are comfortable with.
Underinsuring is a common problem. It might mean home owners need to borrow extra money to rebuild, or compromise on the type of home they want such as size or features.
A bushfire, flood or other emergency could destroy driveways, retaining walls, gardens, sheds, fencing, swimming pools and more. Call your insurance broker or insurance company to discuss your policy limits and coverage.
Know what your policy covers
Will your policy cover accommodation, removal of debris or demolition costs? These details matter. Understand if you have a replacement cost policy that pays to replace all your items at current market price or an actual cash value policy that takes depreciation into account and pays less for aged items.
Make a home inventory
Rebuilding a replacing lost items is easier if you have an accurate home inventory. Here are some methods you could use to document the contents of your home before an emergency occurs:
• Use your smartphone to video/photograph your belongings
• Take a walk and video the outside of your property as well, fences, retaining walls, shed, garages and their contents
• Keep your inventory & photos at another location to your home or store this information online