If you’re one of the many people that carried out any home upgrades over the summer, have you increased your insurance cover too?

Underinsurance is increasingly common. In the past year, only half of our surveyed members who renovated their home also updated their insurance cover.

According to the Insurance Council of Australia more than 80 per cent of households in Australia do not have sufficient building and contents cover.

Making additions or improvements to your home without adjusting the total amount that it is insured for could mean your cover falls behind the true cost of replacing your home.

You may have also accumulated more valuable contents over Christmas so this is a great time of year to assess whether all of your belongings are properly covered.

Underinsurance may not seem like an issue if you only need to replace a stolen television, but it could be a big problem if you need to rebuild your home from the ground up and replace all of its contents after a disaster, such as a fire. Without enough cover, you may end up with a shortfall at a time when you can least afford it.

Our online home insurance calculators can help you estimate the value of your building and contents to determine if you have the appropriate cover.

For more information on how to reduce the risk of underinsurance, click here.