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Are you under insured?


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30 replies to this topic

#1 Feralishous

Posted 30 January 2013 - 07:21 PM

After reading the insurance thread, I started thinking about replacement value for our things.
2 Years ago I furnished our granny flat and it was $25k (Bed and mattress, (has BIR)  2x sofa beds, table and chairs, 4x towels, 4x crockery/cutlery, 2 tea towels, 3 sets of linen (doona, doonacover and fitted sheet, plus pilow cases) kettle, toaster, bathmats x4 (I use one at the Kitchen sink too) tablecloth, knife and chopping board, fridge and 5 pairs of curtains)
We put our old washing machine and TV in there, and our old TV stand.
Our house contents is only insured for 50k. theres NO way that would replace our possessions!
Anyone else under insured?

#2 bakesgirls

Posted 30 January 2013 - 07:25 PM

I was under insured until reading the other thread today. I rang and increased our contents insurance by another 40K (and it turned out it will only cost me an extra $4.90 per month), but after speaking with DH, I think I may have to call back and increase it again. He pointed out stuff I hadn't even thought of.

Today I also specifically insured my wedding and engagement rings which weren't insured previously. Hopefully I'll never have to claim.

EFS

Edited by bakesgirls, 30 January 2013 - 07:26 PM.


#3 CallMeFeral

Posted 30 January 2013 - 07:27 PM

I believe so, yes.

Could anybody who was on the other thread post some of the tips for making sure you are adequately insured? I caught some re: videoing and taking pictures of all your stuff - we haven't done that. But there's probably more in there and I don't want to have to wade through all the moral judgement on insurance to find them - maybe we could put them in this thread so that we can remedy the underinsurance!


#4 frizzle

Posted 30 January 2013 - 07:30 PM

Shouldn't be now. A few years ago we went through room by room. Including clothing and shoes, our work suits etc. we put everything in and allowed for completely being wiped out ie fire.

Someone made the comment along the lines of do you have your husband insured in another thread today and we do. His dad died young and left a small family so we sought advice on life and trauma insurance for him.

#5 Sassy Dingo

Posted 30 January 2013 - 07:30 PM

I'm overinsured for the actual house (as I put in the purchase price rather than the house price into the online application) but might be under for contents. When I ring the insurer next week to reduce the overinsurance, I'll add $50k to contents just to be safe.

I never thought there would be a problem with overinsurance (I know they only pay out the replacement value but liked having a very large buffer in case I had underestimated), but a person in the other thread pointed out how suss that looks if I were to make a claim. I never considered that.



#6 Guest_Sunnycat_*

Posted 30 January 2013 - 07:33 PM

Yes. We don't have contents insurance just building insurance.  Like I said in the other thread, everything we own is crap and we don't have anything worth insuring. If something happens and we lost everything then we would replace it ourselves with more crap from 2nd hand stores and gumtree.

Don't worry EB, we won't be going on ACA or TT demanding handouts.

#7 Sassy Dingo

Posted 30 January 2013 - 07:33 PM

QUOTE (CallMeProtart @ 30/01/2013, 07:27 PM) <{POST_SNAPBACK}>
I believe so, yes.

Could anybody who was on the other thread post some of the tips for making sure you are adequately insured? I caught some re: videoing and taking pictures of all your stuff - we haven't done that. But there's probably more in there and I don't want to have to wade through all the moral judgement on insurance to find them - maybe we could put them in this thread so that we can remedy the underinsurance!



For estimating building costs you can get some sort of idea by your rates apparently - if you look at the 'unimproved value' on your rates and subtract that from your estimate of market value. Apparently you should also include demolition/house removal in the building costs too (in case of complete destruction and need a complete rebuild).

There are apparently also online estimators for contents on insurer websites.

#8 whitelights

Posted 30 January 2013 - 07:38 PM

For the building no, but the contents I'd say we are somewhat under insured.

But like I just posted on another thread, in a worst case scenario and our home burned to the ground (more likely for me than a flood) as long as I had enough to replace the floor coverings, furnishings, white goods, adequate supply of clothing, I'd be fine and I think my contents sum insured is sufficient to cover that. It just wouldn't replace EVERYTHING.

I have enough contents cover that I could replace the necessities to get back on our feet but not some of the 'fun' things that accumulate over the years like surfboards and pool tables and tons of DVDs and if I've just lost my home, I'm not going to be worried about the pool table anyway. I'll just be grateful to have clothes on my back, somewhere to wash those clothes, a bed with blankets to sleep on and a roof over my head.

Edited by whitelights, 30 January 2013 - 07:39 PM.


#9 JRA

Posted 30 January 2013 - 07:45 PM

Our building insurance is with AAMI, so it is not insured to a value, but replacement cost. Funnily enough when  we renovated, our insurance costs went down, we now have window locks and no asbestos.


As for contents, we are underinsured, but we know that and accept that.  Picking up the difference if we lost everything would not be the end of the world.


QUOTE (Sassy Dingo @ 30/01/2013, 07:30 PM) <{POST_SNAPBACK}>
I'm overinsured for the actual house (as I put in the purchase price rather than the house price into the online application) but might be under for contents. When I ring the insurer next week to reduce the overinsurance, I'll add $50k to contents just to be safe.

I never thought there would be a problem with overinsurance (I know they only pay out the replacement value but liked having a very large buffer in case I had underestimated), but a person in the other thread pointed out how suss that looks if I were to make a claim. I never considered that.


Yes, surely over insuring not only is wasting massive money, but highly highly questionable.

#10 Nanns

Posted 30 January 2013 - 07:54 PM

No, our insurer sends out an assessor who lists everything off and tells you how much you should be insured for. If you don't insure for that amount, they can choose not to insure you. If something happens, they have to rebuild/ replace to exact standard.

#11 mummy.to.one

Posted 30 January 2013 - 07:54 PM

I think we are for contents, it's something I should update by going through the house and estimating.

I think things like carpet etc... Also fall under contents so I think it would add up quickly.

Also I know our insurance is limited for things like jewellery, unless you specify each piece and it's value. I have done this for my engagement ring and some other pieces but not all.

#12 whitelights

Posted 30 January 2013 - 08:12 PM

QUOTE (JRA @ 30/01/2013, 07:45 PM) <{POST_SNAPBACK}>
As for contents, we are underinsured, but we know that and accept that.  Picking up the difference if we lost everything would not be the end of the world.


Same here.

We have enough contents cover to get back on our feet with the necessities and we're happy with that.

QUOTE (JRA @ 30/01/2013, 07:45 PM) <{POST_SNAPBACK}>
As for contents, we are underinsured, but we know that and accept that.  Picking up the difference if we lost everything would not be the end of the world.


Same here.

We have enough contents cover to get back on our feet with the necessities and we're happy with that.

#13 ZCE

Posted 30 January 2013 - 08:35 PM

I went through 2 years ago and photographed each room and listed off the contents and their replacement value. I haven't done it since we had a baby so i should update it but i'm confident we're properly insured.

#14 kadoodle

Posted 30 January 2013 - 08:41 PM

We self insure for contents and are shopping around while we build our house for building insurance.  We'll be in an underground structure, in an area prone to fire.  The insurance companies are scratching their heads over that one.

#15 MrsLexiK

Posted 30 January 2013 - 08:47 PM

There are calculators you can use on the companies websites they basically give you the same amount on all of them and they ask the same questions.

We don't have my engagement ring insured because it is on my finger all the time. If I loose a stone that is covered by the store.

#16 ChunkyChook

Posted 30 January 2013 - 08:49 PM

QUOTE (Sunnycat @ 30/01/2013, 08:33 PM) <{POST_SNAPBACK}>
Yes. We don't have contents insurance just building insurance.  Like I said in the other thread, everything we own is crap and we don't have anything worth insuring. If something happens and we lost everything then we would replace it ourselves with more crap from 2nd hand stores and gumtree.

Don't worry EB, we won't be going on ACA or TT demanding handouts.


Same here, the only 'big' thing that isn't secondhand is the tv. Having the actual building insured was more important to me than my second hand crap in it.

I'd rather sit in my new house with nothing in it than pitch a tent on my empty block where my house once was.

Edited by ChunkyChook, 30 January 2013 - 08:56 PM.


#17 Domestic Goddess

Posted 30 January 2013 - 08:51 PM

Building insurance falls under our Strata. Contents Insurance I will be re-considering when DS is at daycare this Friday. I have been wanting to take photos of everything I own for insurance reasons, for ages. Just never got around to it.
However, after having a picket thrown through my window this weekend (didn't damage more than my quilt cover and the window and frame), I think I need to get my rear end into gear.
I don't have receipts of everything I own anymore. NRMA said that photos are fine as well...

Edited by Domestic Goddess, 30 January 2013 - 08:51 PM.


#18 Busydays

Posted 30 January 2013 - 09:04 PM

I have a feeling that if you are underinsured (I.e insured 50k with 100k contents) then you will actually only receive the percentage as your payout... So you would only get max $25k. This makes no sense to me at all, but I remember it being mentioned by our broker when we we're sorting out our business insurance. Maybe that's different.
Our premium went up after the QLD floods by 3k a year (no one in our suburb flooded, not even close). We changed all our insurance around and pay way less, but do not have flood cover (there is honestly no point).
Our house & contents are 450k combined. We also have trauma insurance, & life insurance (in our super accounts, plus top up of what is missing). We will only have life insurance while we have kids at home.
We have a great broker who took heaps of time with us to work out our requirements and find what worked best for our lifestyle and budget. It actually doesn't cost us that much each month, but we feel like we have done our best to cover what we can.

Edited to add: Googled and found out its called applying the condition of average...

Edited by 4boysandme, 30 January 2013 - 09:17 PM.


#19 adnama

Posted 30 January 2013 - 09:10 PM

For our building no, we over insured to cover knock down, removal and rebuild.
Contents possibly, but we are covered enough to get started again, to get back on our feet

#20 bailee

Posted 30 January 2013 - 09:18 PM

We are not underinsured, I dont believe. When we initially took out contents insurance we used a list from an insurer and went room by room and listed the value of what we have in each room. We were surprised at the amount we had. We now revise that every year and up our insurance as necessary - it is automatically indexed but we have upped it a couple of times to reflect what we actually own. We are insured for over $100K. I remember telling a relative how much we had insured for and he laughed at us, thought it was ridiculous. But we convinced him to value his contents and he realised he was under insured by at least half. Our house is insured for replacement value through AAMI - which makes it really easy keeping that policy up to date.



#21 .Jerry.

Posted 30 January 2013 - 09:24 PM

We've been through a house fire, so I know how important it is to insure correctly.
I understood that underinsuring can cause issues if you need to make a claim.

You would be very surprised how expensive it is to set up again if you lose everything.

#22 Guest_Dinah_Harris_*

Posted 30 January 2013 - 09:27 PM

No.  I worked for ten years in banking and insurance, so I have a reasonably good idea of how to value my stuff.
We are insured for $100k all up, which includes special items that are individually insured (wedding ring set).    We don't own anything more than a typical family, but apart from furniture, it includes clothing, shoes, electronic equipment, books, tools, etc.

Edited by Dinah_Harris, 30 January 2013 - 09:29 PM.


#23 amabanana

Posted 30 January 2013 - 09:40 PM

I used to work in that field so my insurance is always up to date.  I've seen too many times what happens if you aren't insured adequately and it's not great.

#24 Holidayromp

Posted 30 January 2013 - 09:49 PM

Nope - I have an extensive Insurance Background working in different areas of Insurance/Departments and Companies including Qualifications in Loss Adjusting there is no way we are underinsured and I think I would have to kick myself up the backside if we were!

#25 Guest_Sunnycat_*

Posted 30 January 2013 - 09:57 PM

QUOTE (ChunkyChook @ 30/01/2013, 09:49 PM) <{POST_SNAPBACK}>
Same here, the only 'big' thing that isn't secondhand is the tv. Having the actual building insured was more important to me than my second hand crap in it.

I'd rather sit in my new house with nothing in it than pitch a tent on my empty block where my house once was.


LOL the only "good" item we have is a tv as well! It was a present from the Inlaws. We do have iPhones and an iPad but to me that is just frivouslous crap that doesn't I lost I could go without.

If we had to start again we would get some essentials and go without.

If I had nice furniture or stuff actually worth insurance I would definitely get insurance but I just don't see the point of insuring our rubbish.






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