Having enough insurance

What is underinsurance?

Underinsurance can happen when you don’t have enough insurance to cover the costs of rebuilding your home or replacing your home’s contents.

While underinsurance can happen with any type of policy, it's most common with home and contents.

If you’re underinsured, it means that if something happens to your home or contents, you won’t have enough insurance to rebuild and cover your loss.

Sometimes you can become underinsured over time – as you gradually accumulate more belongings, or the costs of building materials and rebuilding your home increases over time. It’s important you review the amount you're insured for regularly, to check that you still have the cover you need.

Estimating the cost to rebuild and the value of your contents

Tools such as CGU's online calculators can be useful to help you estimate how much your home and contents are worth¹.

It’s a good idea to make sure you’re insured for the right amount by regularly reviewing your estimates.

Review your insurance every year to make sure the amount you’re insured matches what it would actually cost to rebuild your home and replace all your contents.

If you need more assistance, consider speaking to an insurance specialist.