Underinsurance - The Knock-On Effect!
Under insurance affects more than 4 out of 5 Australians according to a study commissioned by Understand Insurance in 2013 with 40% of homes insured according to the homeowners own evaluation. For many, the knock-on effect from inclement weather conditions such as a natural disaster like ‘Cyclone Debbie’, or an unexpected household accident, can deliver even more trauma.
In some cases, homeowners are often shocked to find that an insurance claim is knocked back because the home is underinsured.
Recognised by the Insurance Council of Australia (ICA) as a growing area of concern for home owners and looking for ways to assist in mitigating the issue, ICA have engaged with CoreLogic to install the Cordell Sum Sure calculator – on its Understand Insurance website: http://understandinsurance.com.au. This free to consumer, 24 hour service provides consumers with guidance on how to estimate the rebuild cost of their home for insurance purposes.
CoreLogic is also working with many insurers interested in providing Cordell Sum Sure directly to their customers to help them get the right level of cover for their homes.
According to CoreLogic spokeswoman Sonya Fisher, at a time when digital innovation and a focus on customer experience is permeating all aspects of our lives, house insurance has been somewhat left behind.
She said, “Insurance protection for your property no longer needs to be a guessing game for consumers with the first implementation in Australia of Cordell Sum Sure via ICA’s ‘Understand Insurance’ website.”
“Although insurance is designed to give us peace of mind, historically it hasn’t been the easiest process to navigate as the average consumer does not have a clear view on the cost to rebuild their home, which is what the sum insured is meant to represent.”
Simply by typing an address into Cordell Sum Sure, the online calculator will display the available data on the property to help users estimate the rebuild cost.
Cordell Sum Sure calculator benefits:
- Estimates the rebuild cost for Australian houses (units and townhouses under strata management will typically be covered under strata insurance rather than home buildings insurance);
- Peace of mind for home owners through greater accuracy and transparency using the online tool to provide a quick and painless way to determine their sum insured;
- Potential homebuyers now have the capability to predict potential insurance costs and determine what the insurance requirements would be if they went ahead with their purchase
Sonya Fisher said, “While underinsuring is certainly something for homeowners to watch out for, so is overinsuring – and for insurance providers, the ability to provide more accurate quotes can help them remain competitive and possibly deliver premium savings for their customers.”
“With houses our most valuable asset, it’s essential that we get our sum insured values and insurance premiums exactly right so that we are looking out for ourselves financially should the worst happen.”
How does Cordell Sum Sure work?
By meshing CoreLogic housing attributes with Cordell’s industry-leading construction cost data, Cordell Sum Sure leverages the most up to date information available to provide a ‘real-time’ rebuild cost estimate.