Research has shown that up to eight in 10 homeowners are underinsured. The Australian Institute of Quantity Surveyors (AIQS) is lobbying for residential property owners to have a professional replacement and assessment report before they can be insured.
What do quantity surveyors do?
Quantity surveyors are degree-qualified to advise on construction costs, including estimating, tendering, contract administration and managing projects. They are also depreciation experts – they can help substantiate tax deductions for investment properties.
Bank lenders use these initial cost reports to identify risks before the building starts. Clients, architects, engineers, planners, and others work with them to keep projects on time, within budget and meet quality standards.
What’s the issue with under-insurance?
Being underinsured means even though you have a policy, you’ll still be out of pocket to rebuild your home after a disaster. Quantity surveyors are up to date on current material and labour costs and can predict price movements, so can accurately estimate rebuilding costs.
Under-insurance more prevalent with global factors at play
Building materials are more expensive and in short supply, and tradies and their skills are in high demand. These factors make it difficult to get an accurate figure for residential building replacement costs.
Homeowners should consider if their insurance covers replacing not just their building, but water tanks, garages, retaining walls, and more.
What can help make sure you’re properly insured?
Insurance policies generally offer total replacement or sum-insured cover. Complete replacement cover includes costs to rebuild your home to the pre-disaster standard. On the other hand, sum-insured cover protects you up to an agreed amount. With the fluidity in building materials’ pricing, you’re more likely to be underinsured if your policy covers you for ‘sum insured’.
If you would like to know more about having appropriate home insurance cover, please CLICK HERE or contact us for more information.