Queensland underwriting agency Sure has warned of underinsurance in cyclone-prone areas after comparing levels of cover in different parts of the state. 

It says the average home building sum insured in non-cyclone areas of regional Queensland is about $532,000 and for contents it is a little over $80,000. Across Cairns, Townsville and Mackay, the figure for home building is $513,000 and for contents it is $72,000.

Sure Insurance MD Bradley Heath says people may be surprised by how much building costs have risen in recent years – especially the cost of a rebuild – and by the total value of their contents. 

“We are appealing to Cairns and Far North Queensland householders to check their current home building and contents sum-insured, as it’s critically important to avoid underinsurance and have in place sufficient financial capacity to completely rebuild their home and replace the entire contents should a total loss occur,” he said.

Debris removal, planning, engineering and local government fees, and temporary accommodation are among factors that must be considered, Sure says.

The Bureau of Meteorology’s October forecast says this tropical cyclone season, running from November 1 to April 30, is likely to be in line with the long-term average in terms of number of storms, while the chance of severe cyclones is higher due to warmer ocean temperatures.