Even after the floods and cyclones of early 2011 many Australians continue to have no or inadequate insurance for their homes. Research by Your Money Magazine found a shocking 70 per cent of Australian households are under-insured.
Managing editor Jackie Pearson said the high cost of premiums deterred many Australians from purchasing adequate cover.
“Under-insurance usually occurs when consumers take out an amount of cover based on the premiums they can afford rather than the actual replacement value of their home and contents,” said Pearson. “If the sum insured falls short of that amount, you could be in trouble if the worst happens.”
Fortunately, it is possible to find better home and contents cover at a more affordable price. Your Money Magazine compared over 50 quotes from national insurance providers for units and houses to find the lowest-cost policies available. The results revealed that households could potentially save over $800 a year by switching to the lowest-cost policy available.
Pearson warned that households reviewing their existing policy or thinking about signing up should check the terms and conditions carefully.
“It’s easy to become complacent about home insurance but households that ignore the fine print are placing their homes at risk,” said Pearson. “Pay special attention to what is included in your policy and what you have to pay an additional premium for.”
For a price comparison of home and contents insurance policies and helpful tips on finding the right insurance for your home, pick up your copy of Your Money Magazine, on sale now at leading newsagents and online at www.yourmoneymag.com.au.
Your Money Magazine
Your Money Magazine is for all Australians looking to increase their personal wealth and achieve the lifestyle they desire. Your Money Magazine’s key focus is to educate the Australian public about money management by providing down-to-earth, easy to comprehend content, detailed product comparisons across a range of categories, and recommendations from some of the country’s leading industry experts.
Combining in-depth research and product comparison tools with shrewd financial education materials, Your Money Magazine takes a unique place in the Australian market allowing readers to not only compare existing products but to educate themselves and take decisive action all in one place.
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