While most home insurance policies in Australia cover bushfires, it’s important to check the details of your policy to make sure you are adequately covered.
Here’s why.
Changed building codes
After the Black Saturday fires in 2009, building codes were strengthened to ensure new homes had better fire resistance. So if you own an older home, or you live in a bushfire-prone region, you might want to check you have enough cover in your policy for rebuilding according to the new rules.
Avoiding underinsurance
Underinsurance is a relatively common problem in Australia, according to the Insurance Council. It can happen for a number of reasons, such as opting for the cheapest or policy or inaccurate property valuations.
Online property valuation calculators can be useful for working out the value in your home for insurance cover and re-building purposes. However, it’s important to realise that these tools are quite general and have their limits. Consider getting a professional valuation.
One way to reduce the risk of underinsurance is by choosing ‘total replacement cover’ in your policy, rather than ‘sum insured’.
Factoring in additional costs
Re-building and replacing contents is not the only consideration – you should also allow for extra expenses following a bushfire. Examples include removal of debris, alternative temporary accommodation and vet bills for any injured pets.
If you are concerned about being inadequately protected, you may be able to purchase a ‘safety net’ cover on top of your standard policy. To find out more, contact your nearest Reliance Partner