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Don’t get caught underinsured
Insurance is definitely not the most fun subject to talk about, but after a bushfire it can be the difference between rebuilding and starting over in debt.
Many people discover too late that their policy won’t cover the true cost of rebuilding to today’s much stricter fire safety standards. After the 2013 fires, some Blue Mountains residents found rebuilding costs had more than doubled what their policies allowed. Others had to borrow heavily or downsize their homes just to get back on their land.
Covid and the fuel crisis have both contribute to increased building costs. The short story is, insurance is there to get you back on your feet – but it only works if your cover is up to date!
Check your policy
- Will it cover the cost of rebuilding to current bushfire construction standards?
- Has your sum insured kept pace with rising building costs?
- Have you had an independent valuation done recently?
A home valuation company can give you a clear estimate, so you’re not left short.
Talk to your insurer
Policies can be confusing. A phone call to your provider can clear up what’s included and what’s not. Knowing you have the right coverage can give you peace of mind in stressful times.
Independent information
These resources are a good starting point for unbiased advice:
- Insurance Council: ABCs of General Insurance and The Risk of Underinsurance
- Choice: Bushfire Cover Update
For building standards in bushfire-prone areas:
- Blue Mountains City Council – Construction in a bush fire prone area
- NSW RFS – Building in a bushfire area
All good so far. But what if you rent, or have tenants living in your property? Click through to the next article for advice for tenants and landlords.