Do you know if your property is adequately insured to cover damage and loss caused by a bushfire?
Neglecting to check and review your insurance cover can mean a devastating loss of your property and belongings in a matter of minutes, as we’ve seen in Victoria in recent years.
All too often underinsurance (also known as co-insurance or non-insurance) can mean extreme financial difficulty follows not just in the days and weeks after a bushfire occurs but for many years to come. As bushfires can cause extremely large losses, careful planning and preparation are necessary to minimise the risk to your property and/or business.
Reevaluating Your Insurance Policy
You can proactively take preventative measures to protect your property in the lead up to bushfire season by reevaluating your insurance policy to make sure it is up to date and provides adequate coverage. A bushfire causes such a major disruption to your life that the support of insurance is necessary to recover.
We have seen examples many times over where people may have taken out insurance for bushfires but have compromised on the premium by insuring for a lesser sum. Or they may just not be sure what their contents are worth or what a policy entails. In this case it’s worth consulting an insurance broker and finding out exactly what you’re covered for and how to manage your policies to ensure you have the right coverage.
The Cost of Repairing a Bushfire Damaged Home
A bushfire takes no prisoners; if your business (or home) is in its path then the likelihood of it being reduced to cinders is a high possibility. For this reason the sum insured needs to cover the cost of debris removal and rebuilding outlays such as, architect’s fees, materials, fixtures and fittings. Legal fees may also be involved.
When Should I Check My Insurance?
A quick check of your insurance policy at renewal time and before bushfire season is a good idea, just to make sure the premiums have been paid and you’re all up to date. If you’ve recently completed any renovations or purchased any major household appliances, then review your insurance to make sure you’re adequately covered.
When checking your insurance, consider taking photographs, a video or making an inventory list of your belongings and keeping it in an off-site location. This can make the processing of your claim a lot quicker and easier for all involved.