If the last few years have shown us anything it is that we need to be prepared for the unexpected, plan for the worst and hope for the best.
2022 has shown us anything it is to be prepared for anything.
It’s estimated that the 2019 / 2020 Black Summer Bushfires in Victoria generated 3,050 insurance claims with estimated insured losses of approximately $18.6 million. There were 5 lives lost and over 300 homes….
During the 2021 / 2022 financial year, the above average rainfalls that occurred due to a second successive La Nina resulted in significant and widespread flooding – this, combined with multiple, severe thunderstorms & even a tornado, cyclones and earthquakes also contributed to extensive property losses Australia wide.
The full extent of losses associated with the most recent flooding events are not yet known, however, sadly, it often isn’t until a loss occurs that people learn that the amount that they have had their property insured for is not enough to rebuild or repair.
So how do you go about estimating rebuilding costs with some level of accuracy?
If you only recently built your property then you may have a quite recent contract to base your estimates from, however, spiralling construction costs over the past few years also means that what may have cost $300,000 3 years ago – may well now cost closer to $400,000 or even more.
As insurance brokers we are not able to assist clients with determining the sum that they should insure their property for as this is outside our professional expertise, however, we can certainly refer clients to valuers or quantity surveyors if need be.
This being said, we can and often do refer clients to a web page that is offered by Cordell Core Logic which can assist home owners in determining what sum to insure their building for.
Click HERE to access this calculator and see how your current sums insured stack up.
Important note
This general information does not take into account your specific objectives, financial situation or needs. It is also not
financial advice, nor complete, so please discuss the full details with your Steadfast insurance broker whether this type of
insurance is appropriate for you. Deductibles, exclusions and limits apply. This type of insurance is issued by various insurers
and can differ.
