Check Out Choice!

Hi Scott

You have strongly suggested (and The Checkout and Choice agree with you) that homeowners should get a ‘total replacement’ policy. So, being the devoted follower I am, I spent my morning looking into it. Who offers such a thing? Well, I looked at ALL the usual suspects ... and not one of them offers it. Everyone’s recommending it, but someone forgot to tell the insurance companies -- and of course if it is to our benefit then they will not want to offer it! Any suggestions?

Tegan

Hi Tegan,

There’s a reason they don’t offer it. Most people totally underestimate the true cost of rebuilding a brand new home, the same way that most people underestimate the cost of replacing all their possessions. You’re bearing the risk of this underinsurance, not the insurance company.

That’s the reason I pay an insurance broker manage all my general insurance: first to make sure I am insured for ‘total replacement’, and secondly, because they’re experts at dealing with the claims process. Insurance isn’t like buying baked beans. Cheaper is not better.

Scott