If a bushfire struck, is your cover enough?
The Bureau of Meteorology’s seasonal bushfire outlook has southern and eastern Australia at a higher than usual risk for a bushfire this summer. Following one of the wettest winters on record, we are now heading into the hot summer months with an increased fuel load, leading to potentially extreme fire weather in summer and autumn of 2017.
Thanks to the wet winter, the southern fire season could start and end a little later than normal so now is the time to review your insurance to make sure you have enough to cover your property or business.
The cost to rebuild is increasing by more than CPI each year, and new government regulations in place for bushfire prone areas are also dramatically driving up the cost to rebuild – so it’s important you review the amount you are insured for each year to be sure you’ll have enough to cover your property.
It’s easy to underestimate the value of your home and contents, as well as the cost of property improvements you’ve made. Make sure you’ll have enough cover to fully rebuild your home and replace your furnishings. The cost of rebuilding has changed overtime, and many people make improvements to their property over the years so make sure the amount you’re insured for reflects those improvements and costs.
For example, you may have insured your home for $350,000, but new bushfire building requirements and fire standards for your area might mean your newly build replacement home needs $100,000 extra of fire prevention improvements.
CGU provides calculators to help you determine how much insurance you may need to rebuild your home and replace your contents. You can use these calculators to make sure you’re insured for the right amount in the event of a bushfire.