The Risk of Underinsurance – Are you certain that you’re covered correctly?

To be underinsured is exactly as it sounds: “In the event of an insured loss, you may discover that your insurance policy does not cover the full re-instatement value of your home.”

Research undertaken by professional surveyors (Working closely with our insurers), indicates that between 70-80% of the Residential properties here in the UK fall into the category of being underinsured. A shocking statistic.?But a very real one.

More often than you would think, people also try to insure their home for less than its full re-instatement value in an attempt to reduce their insurance premiums. This can have serious repercussions if you end up having to cover a portion of the insured losses yourself (And that figure is always a lot more than the figure you have saved in premium reductions).

Below is an example of what could happen if your home is underinsured in the event of a claim being made:

In addition to this, over the past 12 months we have noticed a substantial increase in construction costs across the UK which increases the chances of underinsurance occurring. Which is something for us all to think about.

And this risk of underinsurance doesn’t only apply to the Buildings cover under your insurance policy contract. This could happen in relation to a claim being made for: General Contents; Fine Art; Antiques, Jewellery; and/or Watches.

Here are a few quick tips to help you avoid falling into the underinsurance trap:

1. Get your Buildings sum insured reviewed by a professional (This is something that is relatively inexpensive but, is very rarely undertaken by policyholders. Ask yourself: “Would you sell your house without having a valuation carried out?”)
2. Obtain up to date valuations for high value items/collections (You may be sitting on a masterpiece, without even knowing it. Don’t find this out when it’s too late)
3. Avoid buying insurance cover based on premium (You really do get what you pay for here, and the support & advice of a broker is priceless)
4. Remember to keep your broker updated on changes to your cover requirements (New Purchases and Gifts should be taken into account when undertaking a review of your sums insured)
5. Regularly review the General Contents in your home (A quick inventory exercise could highlight shortfalls in your existing cover which your broker can then rectify for you)
6. If in any doubt, get in touch with your insurance broker for assistance or advice (They’re not only available to you at renewal)

If you haven’t undertaken a review of your household insurance arrangements recently, taking into account the tips provided to you above, why not get in touch with us at?Fidentia Insurance Brokers. Our complimentary service will provide you with the right information and advice so that they can make a more informed & educated decision about how to best protect your home(s), the contents within them and the family members residing there.

If this is of interest, please don't hesitate to contact our friendly team?for an initial chat on +44(0)20 3150 0080 or email?[email protected]

We look forward to working with you.

Fidentia Insurance Brokers Limited

Tel: +44 (0) 20 3150 0080

Fax: +44 (0)20 3150 0081

Email:?[email protected]

Website: www.fidentiains.com