At its core, insurance is about keeping you and your family protected from any unforeseen events. When sorting out your insurance there are certain industry terms that you’re bound to come across. Underinsurance is one such term that people can often be stumped by. 

To put it most simply, ‘underinsurance’ is when you don’t have substantial insurance to cover your specific needs. This can include the loss of assets like your home, property, contents, income, and much more in the event of any major unforeseen event. Underinsurance usually occurs when people are signed up for cover without really looking into it. This careless – one size fits all – approach can mean that your needs won’t be met and your insurance will not be able to cover you as completely as you need it to.

When it comes to insurance, the needs or circumstances regarding insurance plans vary from person to person. Therefore, it is absolutely necessary to make sure that you have the right insurance cover to fit YOUR needs. This is the easiest way to avoid ending up underinsured. 

Another great way to avoid being underinsured is to consult a trusted insurance advisor. They can take the time to get to know your specific needs. From all things family insurance services, to sole traders, companies, and young singles or couples. An advisor will take the time doing the hard work to find the perfect cover for you. An insurance advisor can make use of industry experience and knowledge to make sure that you are fully covered and backed up with a substantial insurance policy that is capable of meeting all your priorities and your requirements. 

Another way to avoid being underinsured involves familiarising yourself with the risks. 

Here are some expert tips and tricks from our team that will help you avoid underinsurance:

  • Do your research! Every cover, policy, and provider will have different conditions and requirements. It’s important to read through as many policy documents as you can and speak to different providers. This way you will be aware of exactly what you’re covered for and if it fits your needs. 
  • Ensure everything is up to date. Insurance documents and policies can often be updated. Make sure any material you’re reading is up to date.
  • Know what you’re NOT covered for. Knowing what your policy has you covered for is important, however it is almost equally important to know what it WON’T cover you for. 
  • Read through the PDS (Product Disclosure Statement) document. In case of any uncertainty regarding through, reach out to your provider or advisor who can help make more sense of it.
  • Build a habit of regularly checking your insurance policy data and relevant documents in order to know what is included in the insurance cover. This is really important to have your information updated to the most recent information. 
  • Understand that life changes and your insurance should be able to change along with it. Your requirements change through various phases of life, the cover you have for your assets last year may not serve your needs during this, or the next one. Speak to your provider when your needs, circumstances, or finances change.
  • It is absolutely necessary for you to know your value, it is important for you to have a sound understanding of everything related to you, including  your health, income, finances, assets, and future financial goals. This means you can gage how much insurance is necessary for you to be paying in order to be properly protected.

If you have any concerns about your current insurance, or want to make sure you get the most out of your cover. Chat to us today to take the weight off.