Property & You – By Paul McKenzie, ABS Conveyancing
Recent times, we seen devastating bushfires, now devastating floods. Are you adequately covered in your property insurance?
First of all, see the fine print, in your insurance policy, to see if you are covered for things like bushfire, storm or flood damage? Some insurance policies do, some don’t.
Secondly, the insurance assessment on your property may not adequately cover you in property reinstatement, as the property reinstatement in building costings are too low. For example, if your property’s home/building and improvements are worth about $300,000.00 to rebuild and your property reinstatement assessment is only $200,000.00, then you have $100,000.00 shortfall to cover with your own money, or forced to take out a loan to cover the shortfall.
Important when taking out property insurance to make sure it covers things, such as bushfire, storm or flood damage. As well as, important to make sure the property insurance assessment is adequately covered, for reinstatement. If in doubt on the property reinstatement costings, then best to obtain a valuation report for insurance purposes, from a property valuer, to assist.