PROPERTY & YOU – BY PAUL MCKENZIE, ABS CONVEYANCING
Summer time, we tend to see bushfires, storms, floods etc.
Are you adequately covered in your property insurance for these events?
Anyone who owns residential houses or commercial property, should check to make sure, their property insurance covers these events. Some insurance policies do, some don’t.
Property owners also should check, if the building reinstatement value insurance is adequate or not, for such an event. If your building reinstatement value insurance assessment and cover is too low, then your run the risk of bearing the cost of the shortfall.
For example, if your building insurance cover is for $200,000 only and the full building instatement value is about $300,000 to rebuild, based on average building reinstatement estimates. Then, you run the risk and bear the $100,000 shortfall. Such situations, you need to cover the shortfall with your own money or take out a loan to cover the shortfall.
If unsure about the building reinstatement value insurance cover is adequate, then best to seek an insurance valuation report, to assist on the adequate insurance cover. People or businesses who own strata property, should make sure, their strata manager has an insurance valuation report done, every 2 to 3 years, to ensure adequate insurance cover.