Older homeowners are underinsuring their properties by an average $131,000, according to new research by Suncorp subsidiary Apia.

The average cost to completely replace a home is $424,000, but many people over 50 are only insuring their homes for $293,000.

Apia EM Grant Taylor says there are many reasons why Australians are underinsured by such a large amount, “including serious pressures on the household budget and a failure to review the value of the home regularly”.

“It is older Australians that can least afford a huge financial setback, such as having to pay out large lump sums to rebuild their property, or replace their contents.”

Apia is warning with the start of the fire and storm season in Australia, older homeowners should be reviewing their polices to ensure they have adequate cover.