Is Recent Inflation Leaving you Underinsured?

With inflation hitting a 30 year high, it’s time to re-evaluate your insurance policy to make sure you’re adequately insured.

The Australian Institute of Quantity Surveyors (AIQS) earlier this month voiced concerns that homeowners and construction companies could be left underinsured following rising inflation and the increasing cost of materials.

If homeowners took out insurance policies more than 18 months ago, then they would have estimated how much a rebuild would cost based on past prices.

In 2022 we have seen a surge in construction material prices thanks to COVID delays and rising inflation.

This means many homeowner policies would not adequately cover rebuild costs in the event they were to lose their home, and they would be left to pay the difference out-of-pocket. And this shortfall could be significant considering the rapid rise in construction prices.

A report carried out by Canstar on behalf of the Insurance Council of Australia found about 83% of Australian households were underinsured, although AIQS estimates it could be as high as 90%.

This means more than four in five Australians are at risk of not being able to completely replace their homes if there was a claim.

“It is scary for homeowners, especially in the wake of recent natural disasters we are seeing across Australia, that they could be left significantly out of pocket if the worst were to happen,” says Jody Williams, Insurance Broker at Oracle Group.

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General Advice Warning

This blog post contains general information only. It does not take into account your objective, financial situation or need. Please consider the appropriateness of the information in light of your personal circumstances.

Jody Williams

Jody Williams

Jody Williams is the perfect broker to select the right insurance on your behalf, saving you time and money. And the best part is – she works for you, not the insurance companies.

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