Watch out for under-insurance

Being under-insured is one of the most common pitfalls when it comes to organising business insurance cover, and it is a problem Michelle Cross, Elders Insurance agent in Mackay, sees on a much-too-regular basis.

She explains that people just aren't getting the advice they need, and are instead relying on their own evaluation abilities to figure out how much to insure their assets for.

As a result, many are not prepared for the actual costs associated with property damage or theft.

Michelle Cross explains that Elders Insurance Mackay has a strategy for helping clients avoid being under-insured.

"What we try to do," she says, "is have a good knowledge of rebuilding and replacement costs in Mackay".

Armed with this knowledge, Ms Cross and her team are able to guide their clients and "let them know that the costs in Mackay can be quite a bit more than what they'd expect".

She also noted that business owners who are estimating the value of their properties often forget to factor reconstruction costs into their calculations.

"They don't allow for some things like demolition and removal of debris, so we just try to guide them through, and help them arrive at something that they're going to be happy with at the time of a claim."

Ms Cross refers to a specific case in which a client who was previously under-insured reviewed their policy in the nick of time.

The client had just been advised by Elders Insurance to reconsidered the amount their property was insured for when they experienced a house fire.

Their building sum insured seemed "a little low", says Ms Cross, so we "gave them some direction on where they could find information about rebuilding costs" and they updated their business property insurance cover.

If they hadn't done so before the fire, Ms Cross estimates they would have been "at least $150,000 out of pocket".

We encourage you to visit Michelle Cross and the team at Elders Insurance Mackay today. They can help you make sure your insurance policy is covering what it needs to.