Welcome to 2026! A new year is the perfect time to review your insurance and ensure you’re not leaving your home, belongings, or business exposed. At Gardian Insurance Brokers, we help homeowners and business owners across Australia avoid one of the most common insurance pitfalls: underinsurance.
Underinsurance occurs when your coverage isn’t enough to replace your assets, leaving you to cover the shortfall out of pocket. Starting the year with a proper insurance review ensures your policy works for you—not against you.Â
What Is Underinsurance?
Underinsurance happens when your sum insured is less than the true replacement cost of your home, contents, or business assets. This gap can result in:
Reduced claim pay-outs
Significant out-of-pocket expenses
Financial stress after accidents, storms, or theftÂ
Even policies that seemed adequate last year may not cover recent renovations, new purchases, or rising construction costs.Â
Common Causes of UnderinsuranceÂ
1. Inflation & Rising Construction Costs
2. Home Renovations & Extensions
3. High-Value Items & Electronics
4. Business Assets & Equipment
5. Assuming Policies Automatically Update
How to Avoid Underinsurance in 2026
1. Review Your Policy Regularly
2. Calculate Replacement Costs Accurately
3. Include Optional Covers
4. Keep Documentation Updated
Real-Life Example
An Australian homeowner insured their property for $400,000. After a severe storm, rebuilding costs reached $550,000. Without proper coverage, they faced a $150,000 shortfall.
With a home insurance review and broker guidance, this financial shock could have been avoided.Â
Start 2026 Fully Protected with Gardian Insurance Brokers
 Underinsurance is common—but easily preventable.
 Make 2026 the year you feel confident in your coverage. Contact Gardian Insurance Brokers today to schedule your insurance review and stay fully protected.
