Construction costs during COVID-19 pandemic has put homeowners at “extreme risk” of underinsurance
According to MCG Director Marty Sadlier , an average building in capital cities such as Sydney, Brisbane and Melbourne has risen more than 10% in the past six months, translating into an increase of $48,500 based given a median construction cost of $485,000.
Many properties in inner-city suburbs have construction costs of more than $1 million, while material and trade shortages are also increasing real costs by about 15% in many cities and towns.
This means property owners could be left hundreds of thousands out of pocket should an unfortunate event have them calling their insurance provider, “Unfortunately, most will only discover they are woefully underinsured when it’s too late.”
What can homeowner's do ?
- Talk to their insurance broker and review current insurance values before renewing
- Use a home and contents calculator to work out current value of your home and
- If you get a cheap premium online, its not necessarily the best coverage , talk to your
insurance broker and see if they can shed some light on coverage .