BSB 805 050

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BSB 805 050

Are you underinsured?

What does it mean, how much should you insure for and are there limits?

30 Aug2019

Whether you’ve added pricey items to refresh your home, renovated to add value, or just haven’t reviewed your policy in a while;

It’s important to check-in on your Home and Contents Insurance to make sure you’re not underinsured.

What does being ‘underinsured ‘mean?

Being underinsured means your policy cover will be unable to pay for the full costs to rebuild your home or replace the contents if something goes wrong. It’s important to remember that short-term savings on premiums could equal heartache when it comes to falling short of replacing your home and/or the contents in the future.

Underinsurance can happen if you have renewed your policy but not reviewed it to add any new or extra items to your home or structure. If you’ve made renovations and not contacted your insurer you may not have adequate insurance in place and be underinsured.

Underinsurance can also happen when a home and its contents is undervalued. It’s a good idea to check list all items within the home to determine a value. Whilst the home rebuild itself can be tricky to estimate, remember to consider costs of demolition, removal of debris and replacement of quality finishes.

How much should you be insured for?

Your insurance policy should cover the true value of your home to rebuild from scratch, as well as the value of all the items inside you home. To figure out this sum you could list out the contents of each room, and calculate what it would cost to replace these. Also, consider the rebuild costs and factors affecting this such as slope of land and matching the same finishes.

Are there any limits to the insurance?

We recommended you read and understand what is and isn’t covered in the policy you have in place also; such as limits for single items which may require their own policy to avoid underinsurance. Be careful to read your Product Disclosure Statement to fully understand the cover you have in place.

Learn more about Home and Contents Insurance through People’s Choice, or get a quote online today!



Subject to the product issuer’s underwriting rules and acceptance guidelines.
Terms, conditions and exclusions apply and are available upon application.
The information above is general advice only and does not take into consideration your personal objectives, financial situation or needs (“your personal circumstances”). Please consider the relevant Product Disclosure Statement (PDS), other Disclosure Documents and your personal circumstances before making any decision to purchase the products. Contact us on 13 11 82 with any questions, or visit your nearest branch to talk to a consultant.
General insurance (including Travel Insurance) is issued by Insurance Australia Limited ABN 11 000 016 722 AFSL 227681 trading as CGU Insurance. All our insurance issuers pay commission at rates which range from 0% - 40% of the base premium. The commission rate varies depending on the type of insurance.


Not covered by insurance? Not a problem. We have Home & Contents Insurance to help protect your greatest assets. Get a quote online today!

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You must be a member of People’s Choice Credit Union to take our Home & Contents insurance with us. Get more information or apply to become a member.



Make the right choice for your insurance needs with the help of our Insurance Product Disclosure Statements.


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