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CommInsure assists Australians in battling the loss from underinsurance

9 November 2006

In the lead up to the bushfire season, CommInsure has enhanced its home building insurance product to battle the underinsurance problem that is prevalent in Australia by introducing Total Building Replacement Cover.

In August 2006, CommInsure completed an underinsurance analysis of customers who had made claims for total building losses, which showed on average its customers were underinsured by 24 per cent.

To address this issue, CommInsure is launching Total Building Replacement Cover which safeguards most homeowners in the event of a total loss for the full replacement of their home, no matter what they have nominated as their sum insured.

CommInsure’s Managing Director, Simon Swanson, said CommInsure understands how difficult estimating the right level of cover can be and how the cost of replacing a home can change drastically over time.

"The last thing someone wants to hear when they have completely lost their home is that it can’t be rebuilt because their sum insured was inadequate," Mr Swanson said.

"The issue of underinsurance is a serious problem in Australia with many people not realising they are not adequately insured until they experience a significant loss, which was highlighted in the case of the devastating Canberra bushfires a few years ago.

"Building costs can change, especially in the case where a number of homes are destroyed at the same time, as a result of disasters such as a cyclone, bushfires or major storms due to supply and demand for building supplies.

"As we head into bushfire season again, we encourage Australians to re-evaluate their building policy coverage to ensure that they are fully protected for the total building replacement value of their home in the event of a major loss," Mr Swanson said.

If you need assistance to calculate your sum insured CommInsure has calculators online at www.comminsure.com.au. CommInsure’s call centre employees are also trained to help customers determine an appropriate sum amount.

For full details contact CommInsure 8am to 8pm, 7 days a week on 13 24 23, visit a Commonwealth Bank branch or go to www.comminsure.com.au.

- Ends -

 

Editors note: CommInsure has 75 Branch Insurance Representatives around Australia. We will be able to supply you with your local representative’s details for localised articles.

Total Building Replacement Cover is only available on Prime and Investment Home Insurance and is not available to customers whose claims settlement is on the basis of indemnity cover as shown on their certificate. For full details on Total Building Replacement Cover, refer to our Supplementary Product Disclosure Statement (SPDS).CommInsure, the registered business name of CIL and CMLA, is a wholly owned, non-guaranteed subsidiary of Commonwealth Bank of Australia (the Bank) ABN 48 123 123 124. A Product Disclosure Statement and any Supplementary Product Disclosure Statements are available from any branch of the Commonwealth Bank. They can also be downloaded at comminsure.com.au and should be considered before deciding whether these products are appropriate for you.

 

MEDIA CONTACT:

Evnike Ens
Media and Communications Adviser
Commonwealth Bank
P: (02) 9303 6412
M: 0409 922 378

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