It’s no secret that building costs are skyrocketing. It’s a 3-year trend with no signs of slowing down; a perfect storm for a sector facing unprecedented cost pressures:
If you had to rebuild a property now, the cost would be through the roof.
Everyone knows insuring a property makes good business sense. But in this dynamic of overheated prices, property owners need to be aware of a hidden threat:
Underinsurance.
This occurs when a property owner doesn’t have enough insurance to cover the full cost of rebuilding their property in the event of a disaster. It’s not a term that’s regularly used, but the consequences of being underinsured for rising building costs can be significant for property owners.
Implications to you
If your property is underinsured, you may be left with substantial out-of-pocket expenses to cover the cost of rebuilding. This can be financially devastating when there’s a total loss, like fire or natural disaster, where the cost can be astronomical.
Underinsurance can also lead to disputes between property owners and insurers, where the owner believed their policy covered the rebuild costs. These disputes can be time-consuming; expensive to resolve, and can leave property owners without funds to rebuild their property.
The simple solution to a costly scenario
To avoid the nightmare of underinsurance, we strongly recommend property owners review their insurance policies to ensure they’re covered for the full cost of rebuilding. This is critical in the scenario of rapidly rising building costs; that can quickly outstrip the cover provided by under-valued insurance policies.
We offer our clients Insurance Replacement Valuations for all assets, providing these services through our Australia-wide network.
Get the right cover uncertain times require
Don’t let underinsurance catch you out. Arrange your Insurance Replacement Valuations now.
To learn more, please contact Carlo Gentili or Charles Galayini through the following details
For a printable version of this article, click here
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