How much insurance cover is enough?

One of the most difficult decisions when purchasing home insurance is how much to insure your building and contents for. Roderick Insurance Brokers in Geelong and Werribee understand everyone’s home and contents are different, and provide this guide to help you calculate the insured sum that you need to best protect your interests.

When estimating your sums insured you should be considering how much it would cost to replace the items now at current prices, not necessarily what you paid for them.

Remember that while you do not want to over insure, as that will result in you paying for cover that you do not need, you definitely do not want to under insure as you can be left with a financial loss in the event of a claim.

If you are unsure of the replacement cost of an item, it is probably safer to estimate slightly on the higher side. Recent surveys conducted by ASIC suggest that up to 81 per cent of consumers were under insured by more than 10 per cent. Please contact our Geelong insurance brokers for more information.

Roderick Insurance Brokers provide the following online calculators for our clients:
Home Buildings Insurance Calculator Home Contents Insurance Calculator

Alternatively, you can download a manual PDF version to use later:

Get the advice of a professional

When it comes to assessing the value of your building and contents, there is no substitute for expert advice. A professional valuer, builder or architect knows the current costs of labour and materials, and will be able to help you estimate how much it could cost to rebuild your home. If you don’t know any architects, or builders, your local Housing Industry Association (HIA) office will be able to put you in contact with one.

A professional valuer may also be a good idea for your content items, particularly if you have antiques, paintings or unusual items that might be difficult to put an accurate value on. Roderick Insurance Brokers can suggest a professional valuer or you can find one in the yellow pages.

Please note: this guide is provided as general advice only and does not take into account your individual circumstances. Please contact us if you wish to obtain personal advice as to which policy may best suit your needs. Before purchasing any insurance policy you must consider whether it is appropriate for your needs and obtain a current Policy Disclosure Statement. Where the policy is sold via our office you should also read our Financial Services Guide.

Typical building replacement costs are provided by Reed Business Information Pty Ltd (A.B.N. 80 132 719 861) trading as Reed Construction Data (‘Reed’) and typical building contents replacement costs are provided by Sum Insured Pty Ltd (A.B.N. 55 947 630 521 (‘SI’) trading as Home Contents. Whilst every care is taken to ensure the accuracy of the information as a guide for costing, no responsibility is accepted by either Reed, SI, Steadfast or the Steadfast Broker for its accuracy. Please check with an Architect, Builder, Quantity Surveyor, Valuer or other suitably qualified professional for an accurate estimate. Neither Steadfast nor the Steadfast Broker takes any responsibility for the costs provided by Reed or SI nor any liability for the accuracy of or reliance upon or use of, the costs. To the fullest extent permitted by law, Reed, SI, Steadfast and the Steadfast Broker expressly disclaim all warranties, express or implied, including, but not limited to, the implied warranty of fitness for a particular purpose. Reed, SI, Steadfast and the Steadfast Broker do not warrant or make any representations regarding the use or the results of the use of the information provided in terms of its correctness, accuracy, reliability, or otherwise.