The Top 5 Ways to Avoid Underinsurance

August 23, 2019

Underinsurance is a huge issue in Australia, and statistics continue to reflect this worrying trend, with the Australian Bureau of Statistics finding that 1.8 million Australians don’t have home and contents insurance. As professional insurance brokers in Perth, we come across situations every day where people discover too late that they’re underinsured. To help avoid this happening to you, we’re here to share our top tips for avoiding underinsurance.

1. Identify your areas of risk

The first step to avoiding underinsurance is to consider all of your areas of risk. For most people, this would mean having home and contents insurance to protect your property and possessions and motor insurance if you own a vehicle. However, there’s additional coverage available, such as life insurance, which can protect you in the long term, and there are more complex considerations if you own a business. Take the time to think about your unique risks so you can get the right insurance coverage.

2. Accurately estimate value

One of the biggest reasons why people are underinsured is that they underestimate the value of their home and contents. Don’t rely on guesswork – accurately estimate replacement costs for your possessions so your insured amount is as close to the mark as possible. There are plenty of online calculators which can help you with your estimates.

3. Review your insured amounts

Remember that costs can change over time so review your insured amounts at least annually to see if you need to increase your cover. For example, the value of your home may increase or replacement costs for your possessions may also go up. Also, let your insurer know if there are changes in your circumstances which require additional cover.

4. Choose quality insurance

When we’re all trying to budget, it can be tempting to settle for the cheapest possible insurance premiums you can find. However, cheaper doesn’t mean better and many people find that they don’t have the level of cover they need at claim time due to numerous exclusions. While it’s important to source insurance cover which fits your budget, you also need to ensure that you have quality cover which protects your risk exposures.

5. Speak to your insurance broker

If you’re worried that you’re underinsured with your current insurance or you’re looking to overhaul your insurance package, speak with your insurance broker. They’ll be able to take a closer look at your risk exposures and ensure that you have sufficient cover. They’ll also suggest additional inclusions which can be added to your policy if you have additional requirements that require coverage.

If you’re looking for insurance brokers in Perth, GSK Insurance Brokers can help. We have a client base which stretches across Australia—a testament to our exceptional customer service and industry knowledge. Our team of insurance brokers in Perth and other parts of Australia will work with you to identify your areas of risk so you can be confident that you have the right coverage in place.

For Perth insurance brokers, contact GSK Insurance Brokers today at (08) 9478 1933.