Beware the Perils of Underinsurance
We all love the convenience of simply renewing cover at the same level at each renewal. But if it no longer reflects the true value of your business or property, it could leave you with bigger problems should something happen.
What is underinsurance?
Underinsurance is when the level of cover underestimates the true value of your property, assets and business. If you ever need to make a claim, it could lead to a significant shortfall when your business is at its most vulnerable. If you are insured for too much, then you’re probably paying too much for your cover. If you are insured for too little, then something called the Average Clause can significantly reduce how much you could claim. The consequences of underinsurance can be severe.
How can we help you avoid being underinsured?
Although most policies have their sums insured index-linked at renewal, it is worth reviewing these on a regular basis, especially if there has been changes such as additional purchases or buiilding work completed. An up to date building insurance valuation can make sure that your cover reflects any changes brought about by factors such as inflation, supply chain issues and labour shortages. We can offer access to a desk-top building valuation service at preferential rates. This provides a guaranteed rebuild cost valuation for your property.
