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Check you are not underinsured

10 FEB 2022

check you are not underinsured

Coles Insurance

If, in the aftermath of a storm, your home or contents has been lost or damaged, there can be a lot of doubt and uncertainty around what your insurance will cover. Being underinsured can heighten your financial and emotional stress – especially after an extreme weather event, which comes with its own, unique set of challenges.

What is underinsurance?

Underinsurance is when your current policy doesn’t offer adequate protection if something were to go wrong. Meaning the insured value of your home and contents, for example, is actually not sufficient to help you cover the cost of replacing or rebuilding your property to the same standard.

Many home owners don’t realise they’re underinsured. This is because it tends to happen over time. Perhaps you’ve recently renovated, made a big lifestyle change or had your area’s building regulations changed over – without you even realising. Unexpected or unknown changes to building regulations is a particularly common reason behind underinsurance for those living in older style homes or bushfire prone areas.

Whatever it may be, if you’re not regularly reviewing your policy cover you risk being underinsured. This means, if a serious event occurs (like a storm or flood) and your policy is insufficient, i.e. unable to help cover the large financial expenses due to weather damage, you could be left significantly out-of-pocket.

What you can do to avoid it

Don’t be caught short by underinsurance. Find out what you can do to help you get greater peace of mind and adequate protection.

  • Re-evaluate your home cover once or twice a year, before storm and fire season, or when relevant changes occur.
  • Check that your insurance policy is not only up to date but appropriate for your current needs.
  • Use an online insurance calculator to help estimate any rebuilding or replacement costs.
  • Remember to include replacement costs of all contents items including everyday items such as clothes, Manchester, carpet and curtains.
  • Make sure you include precious possessions when estimating these costs and consider whether you need to specify any items separately (such as jewellery) or require cover away from home as well as at home.

In short, it's important to regularly check your policy cover in order to reduce the risk of being underinsured.

As we’ve moved into storm season, it’s important to know what to expect this summer. Read more information on La Niña here.

For tips on how to prepare your home during storm season, click here.


This page provides general advice only. For up-to-date and specific advice relating to the risks in your area please speak to your local council or emergency services.

Terms and conditions

Product related

Standard underwriting criteria apply. Coles Supermarkets Australia Pty Ltd (Coles) is an authorised representative of the issuer, Insurance Australia Limited (ABN 11 000 016 722) (AFSL 227681), part of Insurance Australia Group (IAG). Any advice provided is of a general nature only and does not take into consideration your objectives, financial situation or needs. Before acting on any advice you should consider its appropriateness. You should read the Product Disclosure Statement and Target Market Determinations available at before deciding whether to acquire an insurance policy.