Are You Underinsured?

Make sure you’re properly protecting yourself and your family

- Jessica Multari, Anna Kantilaftas.

When it comes to insurance, the old saying, “You don’t know what you’ve got till it’s gone,” rings true. If you’re like many Australians, you probably don’t realise how much cover you need until it’s time to make a claim. From health scares and home disasters to car accidents and mishaps, day-to-day living can be risky business.

In fact, one in five Australian families suffer an unforeseen event – such as injury, illness or death – that prevent them from working. Unless you’re financially equipped to recover from associated losses, chances are you’ll have to rely on insurance to get you back on your feet.

Why, then, are so many of us underinsuring ourselves?

WHAT IS UNDERINSURANCE?

“Most often we think of underinsurance in terms of not receiving enough money to meet our needs in the event of a claim,” says Canstar group executive of financial services Steve Mickenbecker. “However, underinsurance can also occur when the policy doesn’t cover the event that has resulted in the loss and the claim is declined.”