00:00Ashley Timms was on holiday in Fiji when she got the call an electrical fire had ripped
00:08through her Toowoomba unit.
00:09I lost just about everything.
00:12She managed to get a full payout on her contents insurance policy, but it wasn't enough to
00:17cover everything lost in the 2017 fire.
00:20All the little things, all your clothes, all the plates, books, DVDs, things that you don't
00:27actually consider, it all adds up to a lot.
00:31She was underinsured by about $20,000.
00:36When I first got insurance, I wasn't sure how much to get, but there was also the concern
00:43of how much I could afford.
00:45Underinsurance is also an issue for homes and businesses in flood-ravaged North Queensland.
00:50Because of the increase in property builds, the cost to build property, we're seeing that
00:55people are unintentionally becoming underinsured.
00:58We are definitely seeing people, because it's a cost of living crisis, starting to underinsure
01:03or take out no insurance at all, so that is a really, really big problem.
01:08The Insurance Council of Australia has found that 83% of households believe they're underinsured
01:15when it comes to home and contents insurance.
01:18That's if they can even afford it.
01:20It's a risky take, isn't it?
01:21It's a gamble.
01:22It's always a guesstimate.
01:23It just started off at a certain figure and it's just kind of adjusted up over the years.
01:28The Insurance Council is urging homeowners and renters to think about the true cost of
01:33rebuilding.
01:34The main risk over a period of time is that people set and forget their insurance.
01:39They need to take into account that we've been through a period of very high inflation.
01:44With inflation, it pushes up the price of everything, including the cost of rebuilding.
01:48Ashley Tims says while she was underinsured, she's thankful for what she received.
01:53I'm always going to advocate for just get something.
01:57Because even when you're underinsured, it's still some money to rebuild your life.
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