financial losses. Some of these include loss of rental income, property damage, property theft, legal action costs and injury liability.
But seeking out an insurance provider for a policy is only one step. You also need to ensure you have an adequate level of cover. This is where the concept of ‘replacement value’ comes in.
Sums insured or total replacement cover?
Home insurance policies often come with ‘sum insured’ cover. This is based on an estimate of the cost of rebuilding if the home is destroyed.
However, another type of cover is ‘total replacement’ – which is based on a more accurate assessment of your property’s value. With this kind of policy, you are less likely to be underinsured than with a sum-insured policy.
Given that surveys indicate a substantial proportion of Australians could be underinsured, it’s important to ensure you have adequate cover to avoid major financial losses.
If you think you may be underinsured, we can help you find a policy that provides replacement value for your rental property. Get in touch with your local Reliance Partner to find out more.
Source: https://understandinsurance.com.au/mediarelease/plain/1