The Government's new granny flat exemption is designed to make building easier.

It does.

The problem is that it may also make it easier to become underinsured.

A well-finished minor dwelling with a kitchen, bathroom, plumbing and electrical services can add hundreds of thousands of dollars to a property's rebuild value. Yet many homeowners never update their insurance once construction is complete.

Traditionally, consents, inspections and compliance processes created natural prompts for owners to review their insurance arrangements. With fewer administrative steps, there is less reason for people to stop and ask whether their policy still reflects the property they now own.

For brokers, this creates an important opportunity to start the conversation.

If a client has recently built, or is planning to build, a granny flat or minor dwelling, now is the time to review their rebuild value and ensure their cover reflects reality.

The exemption makes building easier.

It does not reduce the cost of being underinsured.

Because one of the most common insurance mistakes is not what people build.

It's forgetting to insure it once it's built.