What is underinsurance?
This is when the amount you are insured for (on your Certificate of Insurance) is below what it would cost to replace or rebuild.
According to the Insurance Council of Australia (ICA), your property is considered to be underinsured if your insured amount covers less than 90% of the cost to rebuild. For example, if you have your home insured for $200,000 but it will cost $300,000 to rebuild it, you may not receive enough money from your insurance company to rebuild.
We have sum insured calculators accessible from our Household Insurance pages and online quote system to help you work out how much you should insure your property for.