A property valuation group says it has found underinsurance totalling more than $5 billion since launching a building cover assessment tool a year ago.

Robertson & Robertson Consulting Valuers identified the “significant gap in coverage” across more than 22,000 property reports generated by its iValuateProperty system.

It found homes have a median underinsurance rate of 26%.

iValuateProperty provides reports for more than 550 businesses across Australia, including brokers and underwriters. It is designed to help policyholders close insurance gaps.  

Robertson & Robertson says its reports “frequently uncover overlooked factors that can materially influence exposures”, including unaccounted site changes, debris removal, demolition and materials hazards.  

“We created iValuateProperty to provide a solution for more accurate replacement valuations, which remain a persistent challenge across the insurance industry, and provide greater transparency and confidence for policyholders,” MD Scott Robertson said.