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Make sure you are not under insured

//Make sure you are not under insured

Make sure you are not under insured

Property Insurance Centre aims to ensure its customers are properly insured in the event of a claim – and perhaps most importantly this means insuring any property you own for its current value. Over time, property can increase in value significantly & is therefore essential to insure for the correct amount to avoid under-insurance. It is estimated under-insurance affects a significant amount of all current live policies and that many customers are currently under-insured without knowing. The consequence of under-insurance is the ‘average’ condition which affects any claim amount paid to the customer in the event of a claim. For example, if a customer is under-insured by 50%, the average condition will be applied, and any claim the customer may have, will have their claim payment in turn reduced by 50%.

Property Insurance Centre invited Mr Stephenson’s renewal. Aware that this very important condition is sometimes more easily understood in a sample case study, Property Insurance Centre provided an example case study sample on the renewal letter, as to what would constitute under insurance. This case study is part of all our renewal letters. Mr Stephenson read his renewal invite letter and paid particular attention to the case study. Mr Stephenson had his commercial building in London, insured for £1,500,000, and thought he would obtain a survey on the building to obtain a more accurate reinstatement cost. The survey revealed Mr Stephenson was under insured by nearly 70%. Mr Stephenson contacted us and increased his declared building sum insured to £5,000,000, and paid the additional premium. The following month Mr Stephenson had an escape of water claim, where the damage was estimated to be just over £10,000. Had Mr Stephenson not read our case study on the renewal invitation letter, he would have received a payment of £3,000 instead of the full claim cost of £10,000. This is just some of the expert information which is provided clearly by Property Insurance Centre, to ensure you are correctly covered and not under insured!