The Road Ahead : April 2013
ROADAHEAD.COM.AU THE ROAD AHEAD APR/MAY 2013 62 MEMBER ESSENTIALS | INSURANCE THIS YEAR'S FLOODS and storms have been a timely reminder of the unpredictable nature and severity of Queensland's weather, yet RACQ Insurance research* has shown many homes are without any, or have too little, insurance cover. RACQ Insurance CEO Bradley Heath, said Queensland home owners faced the prospect of significant losses if they had no insurance, or because their household insurance was insufficient to cover the full replacement value of their home. "Your home should be insured for the amount needed to rebuild it at today's prices, inclusive of all planning, architectural, engineering, construction and associated costs," Mr Heath said. "The cost of removing debris and the value of any additions or renovations carried out on the property are also factors that are often overlooked by householders in their calculations." The RACQ Insurance research showed that 14 percent of Queensland households had no home building or contents insurance, and many were underinsured. The RACQ study revealed more than one in 10 (11 percent) of people who had home building insurance believed their current insurance would not cover the full cost of rebuilding their home if it was a total loss. Sixteen percent of householders did not believe their current level of insurance cover would be sufficient to completely replace the contents of their home. The RACQ research found one-third of Queensland householders (33 percent) had not checked their level of insurance within the past 12 months. Less than one-quarter of the state's householders (24 percent) said they checked their insurance cover within the past two years, and six percent said they last checked their level of cover between three to five years ago. Householders gave the following reasons for being underinsured: • Just haven’t got around to it (47 percent). • House prices keep going up (21 percent). • Too expensive (19 percent). • I didn’t know that I should check my level of cover (eight percent). • Assumed an increase and didn’t want to pay it (three percent). Eight percent of householders said they had decreased their level of cover in the past 12 months, and four percent had also done so one to two years ago. "The level of home building underinsurance across Queensland and the high proportion of properties without insurance are alarming, particularly as the frequency and severity of major weather events appear to be increasing," Mr Heath said. "Not only is it vitally important to have home insurance, but the level of cover must be checked annually, otherwise your property investment may not be fully protected. Mr Heath said home buyers and sellers needed to be aware of other insurance issues. "Many home buyers are so busy packing and looking householders urged to update insurance as weather threatens STORY MIKE SOPINSKI INSURANCE PRODUCTS ARE ISSUED BY RACQ INSURANCE LIMITED, A WHOLLY OWNED SUBSIDIARY OF THE ROYAL AUTOMOBILE CLUB OF QUEENSLAND LIMITED. CONTACT OUR BRANCHES, AGENTS OR PHONE 13 1905 FOR A PRODUCT DISCLOSURE STATEMENT. PLEASE READ THE PDS BEFORE YOU MAKE ANY DECISION REGARDING THIS PRODUCT.