Property insurance dos and don’ts
HOW much should you insure your property for? The value that will enable your home to be replaced in the event that it becomes lost or damaged. If an underinsured property is destroyed, the insurance policy will offer no capacity to fully replace it. What are common mistakes made when insuring? Underinsuring. In 2005 the Australian Securities and Investments Commission estimated 70 per cent of homes were underinsured. How can you avoid underinsurance? Compile an annual list of all home contents and their replacement values and adjust cover accordingly. Also ascertain the rebuilding costs for your property, taking into account any renovations or home improvements.