It’s no secret that underinsurance is a major problem in the Adelaide body corporate valuer industry. In fact, a recent study by the Insurance Bureau of Canada (IBC) found that nearly half of all strata buildings in Canada are underinsured.
So what exactly is underinsurance? And more importantly, how can you avoid it?
Underinsurance is when your Adelaide body corporate valuer is not insured for its full replacement value. This can happen for a variety of reasons, but the most common is that strata buildings are not properly valued when they’re first insured.
Over time, as the cost of construction and materials increase, the value of your Adelaide body corporate valuer will increase as well. But if your insurance policy isn’t updated to reflect this increased value, you could find yourself underinsured.
There are a few other reasons why your strata building could be underinsured, including:
-You have made changes or additions to your Adelaide body corporate valuer that have not been properly reflected in your insurance policy.
-Your Adelaide body corporate valuer is located in an area that is prone to natural disasters, such as earthquakes or floods, and you don’t have adequate coverage.
-Your strata building is an older one that may be grandfathered in at a lower replacement value.
So how can you avoid being underinsured? The best way is to have your Adelaide body corporate valuer properly valued on a regular basis, at least every five years. This will ensure that your insurance policy is always up-to-date and accurate.
You should also be aware of the potential risks that your Adelaide body corporate valuer faces and make sure that you have adequate coverage for them. For example, if you live in an area that’s prone to earthquakes, you’ll need to make sure that your policy includes earthquake coverage.