Do I need an insurance valuation?
It depends… some insurance companies don’t require a full valuation report from a certified practising valuer. BUT it’s always a good idea to make sure you’re insuring for the right amount, and most leading insurance companies in Australia require it.
If you’re in any kind of special zoning (like flood prone, environmental, or fire zone) or have a cracking house that holds special value (like architectural or historical significance), it will be a must.
Of course this might not be good news if you’re the homeowner and just want a policy, but a good way to look at it is to consider the consequences of being over- or under-insured.
Being overinsured:
This mens paying more than you have to! Generally this should be avoided at all costs!
Paying more premiums to insure your property than you need to is a waste of time and money. Many insurance companies will err on the side of over-insurance but it’s not a situation that benefits the homeowner.
Being under-insured:
Perhaps the most devastating outcome of insurance problems is the worst case scenario of being under-insured. Homeowners often don’t realise this is the case until after a flood or fire has swept through and taken your house, and you realise you won’t be paid enough to rebuild it.
This outcome is best avoided by having a certified property valuer who can ensure your insurance valuation meets all legal requirements and future-proofing methodologies to mean if the worst happens, you will be able to rebuild.
Don’t wait for something bad to happen to realise you’ve been paying the wrong premium amount… speak to your insurer or legal representative now and get a qualified valuation to make your future watertight. Or fire-proof. Pun intended.