Australian property owners may be presently suffering from a false sense of security when it comes to insurance, it has been claimed.
Propell National Valuers national quantity surveying manager Isik Bozdag told Australian Property Investor that the ongoing soft market conditions may have given rise to many people feeling they have adequate cover in place, but many may actually be under-insured.
Properties are considered to be under-insured if their level of cover does not meet 90 per cent of the rebuild costs, something that may have been happened for many owners in recent years due to the rising cost of materials.
Mr Bozdag commented: "This means that in some areas the replacement costs associated with property may have risen, resulting in more cost to rebuild than the property is insured for."
He added that those who are unsure of their level of cover should contact their insurer to put their mind at ease.
Meanwhile data from PRDnationwide recently highlighted a reduction in home affordability for Australian buyers over the last five years.
Posted by Craig Francis
