Most insurance companies agree that up to 40 per cent of all homes are uninsured or, more likely, significantly underinsured.
It’s not terribly uncommon to learn that some people who experience the loss of a home from fire or have it damaged by storm or ransacked by thieves, later admit that they had simply neglected the insurance.
A secure home is not just a necessity, home ownership itself is also the first step towards long term financial security. Losing it can be a real blow to your finances and having to start again from scratch can be devastating.
It is simply not worth the risk to ignore adequate insurance when there are plenty of products on the market to meet your requirements and budget.
Insurance premiums have risen in recent years and this can impact on tight family finances, however the risk of being uninsured is a far greater burden. Switching to regular monthly payments which combine both building and contents insurance can help bring down costs.
It’s not so much a lack of insurance which catches most people out, but the mistake of underinsuring and not being able to recover financially after a disaster.
Building costs have risen significantly over the last few years, meaning that many people have underestimated the amount of insurance needed if rebuilding is necessary.
Many households underestimate the value of their possessions and lack adequate contents insurance. So, once a year it’s a good idea to walk around your house and make a general note of its contents and what it might cost to replace them at today’s prices, including all your shoes and clothing, linen, furnishings, carpets, drapes, white goods, appliances, air conditioners, electronic gadgets, TV, kitchenware, sound system, computers and more.
Why not conduct an insurance review at your place this weekend? It will only take an hour and might save you a lot of grief.