As homeowners, we diligently purchase insurance policies to protect ourselves from unforeseen circumstances such as natural disasters, theft, or accidental damage. However, many of us might be unaware of the spiralling building costs, which could potentially leave our homes underinsured. With today’s increasing construction and material costs, the amount we once budgeted for insurance coverage may no longer be adequate to protect our homes in the event of a disaster. In this article, we will explore why many homes may be underinsured and what steps homeowners can take to ensure they have adequate coverage.
New research reveals that a leading home insurance provider only pays out in full for five out of every six claims made by policyholders who have failed to factor in escalating building costs when renewing their insurance. Fewer than one in 10 people alerted by their insurer to a deficiency in their cover have made the necessary changes, according to the survey conducted by Aviva. Billy Shannon, an Aviva spokesman, warned that levels of underinsurance were rising and advised all policyholders to review their cover and make any required adjustments. Even those insuring their homes for €300,000, when the actual rebuild costs top €400,000, risk being underinsured by 25%.
In conclusion, it’s important for homeowners to reassess their insurance coverage and ensure they are adequately protected against the rising costs of rebuilding their home. Don’t wait until it’s too late to find out that your insurance policy falls short of covering the full cost of rebuilding, leaving you with a significant financial burden. Take the time to review your policy with your insurance provider and make any necessary adjustments to ensure you have the protection you need. By doing so, you can have peace of mind knowing your home and your financial future are secure.
