The cost of home insurance has risen steeply in recent years, but almost one in five households still find themselves under insured when they need to make a claim, according to a new report. With natural disasters such as wildfires, hurricanes, and flooding becoming more frequent and severe in many parts of the world, it is more important than ever for homeowners to ensure they have adequate coverage. But with the cost of premiums rising, many are finding it difficult to keep up with the cost of their policies. In this article, we will examine the reasons behind the increase in insurance costs, and explore some strategies that homeowners can use to ensure they are fully covered in the event of a disaster.
Many insurance policyholders are finding that their coverage falls short when making a claim. Aviva Insurance conducted research that found nearly 20% of householders are underinsured when they make a claim. This is because consumers have not accounted for rising costs, and they need to insure their homes and contents for more money. The Central Bank has ordered home insurers to issue letters warning that insurance cover may be inadequate in the event of a claim. Aviva-commissioned research indicates that four in ten homeowners have received such a letter. Of those who have, only 6% have increased their sum insured to the correct rebuilding cost, according to iReach research also run by Aviva. Customers who are underinsured and who make a claim might not be fully protected and may not receive the full amount necessary to rebuild or repair their home. Policyholders may increase their cover at any time and do not have to wait for their insurance renewal date to do so. The Society of Chartered Surveyors in Ireland’s house rebuild calculator, available on its website, is recommended for customers to ensure full coverage.
In conclusion, it’s clear that being underinsured when making a claim can leave households with unexpected financial burdens. With costs on the rise, it’s important to assess your insurance policies regularly and make sure that you have adequate coverage for all potential hazards. Don’t let a lack of adequate insurance coverage put you or your family in financial jeopardy when the unexpected happens. Take the time to review your policies and speak to your insurance provider to ensure that you have the coverage you need for peace of mind.
