RAA urges householders to regularly review their insurance cover

21 March, 2022

Householders are being urged to truly value their homes and contents and avoid being underinsured, following a survey by RAA Insurance.

More than 500 RAA members responded to a survey which checked how often they reviewed the value of their home and contents when it came to estimating their sum insured.

The survey findings revealed  

  • Almost half (49%) last reviewed the replacement value of their home and/or contents more than a year ago, a quarter more than two years ago and one in ten more than five years ago.
  • A quarter of respondents are not very or not at all confident in estimating the rebuilding cost of their home or replacement cost of their home contents.
  • Only two thirds believe they are insured for “about the right amount’’ when it comes to the value of their building and contents

RAA Insurance chief executive Tom Griffiths said the survey showed many householders needed to be more diligent when it came to reviewing their policies.

“The purpose of insurance is being able to replace loss or damage to your home or contents, so it’s crucial to know how much money that would cost,’’ he said.

“The last thing you want if you are the victim of a burglary or house fire is to find out you weren’t insured for the full replacement costs, so we urge householders to review their sum insured on an annual basis.’’

Mr Griffiths said, as time goes by, people typically accumulate more goods, such as electronic items like new TVs, fridges and laptops so it was crucially important the replacement cost of these items is included in the sum insured.

“People may also spend thousands of dollars on solar panels, or renovations of bathrooms or kitchens, which should also be accounted for in the value of their building insurance,’’ he said.

“Householders should also be aware that building costs in South Australia are on the rise.

“Last year the construction cost index increased 7.5 per cent, which the Master Builders Association blamed on a surge in demand for new homes, coupled with supply chain disruptions and a shortage of materials.’’

To learn more about RAA home insurance visit Home Insurance (