RACQ has raised concern at the number of Queenslanders who were willing to roll the dice and risk having no insurance on their home and contents.
The 2016 RACQ Household Cover Index showed 10.8 percent of Queensland householders had no home building insurance and 7.3 percent had reduced their level of home insurance cover over the past year. The research also found an alarming number of Queenslanders (34.2 percent) were without any insurance on their home contents and 8.5 percent had decreased the level of their contents cover.
RACQ Executive Manager Insurance Communications Mike Sopinski said the findings were concerning as Queenslanders faced the prospect of significant loss if they had no insurance, or because their household insurance was insufficient.
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The study identified underinsurance as a major concern. Nearly 10 percent (9.4 percent) of householders said they did not believe they had a sufficient level of cover to completely rebuild their home if it was a total loss, while 15.8 percent did not have an adequate level of contents cover.
“Not only is it vitally important to have home insurance, but the level of cover must be checked annually, otherwise your property may not be fully protected,” Mr Sopinski said. “Your home should be insured for the amount needed to rebuild it at today’s prices and building standards, inclusive of all planning, architectural, engineering, construction and associated costs. Nearly half of those surveyed (43 percent) hadn’t checked their level of home insurance over the past year and well over one-third (39 percent) hadn’t done so with contents.”
Included among the reasons householders gave for being underinsured were:
• The value of my home has not increased (54.6 percent)
• Just haven’t got around to it (36.9 percent)
• I didn’t know I should check my level of cover (10.8 percent).