Primecover News 17th May 2010

Avoid paying the price for underinsurance.

Underinsurance is becoming an increasing issue for homeowners over time, a sample of 47 valuations revealed underinsurance totalling 130 million.

• In the event of a claim, the ‘average’ condition applies – even if the under-insurance is unintentional. Under this condition, the amount paid by the insurer in the event of a claim is reduced in direct proportion to the degree of under insurance.
• Most individuals and organizations are penalized at the time of claim as a result of underinsurance.

General Benefits

Establishing the true rebuilding cost of building/facilities provides the following general benefits:

• Ensures peace of mind for the parties involved in the insurance contract – insurer and policyholder
• Reduces level of disputes and adversarial relationship.
• Reduces claims duration and process
• Enhance business continuity
• Ensures win-win for parties involved in the insurance contract i.e. the policyholder pays and the insurer receives the correct level of premiums appropriate to the risk.

Should you wish to check the re-building cost of your property you can speak to one of Primecover’s advisors or log onto www.abi.bcis.co.uk go to the calculator and answer the few questions a re-build sum insured is then provided alternatively refer to your property valuation report.

Article published on: 17/05/2010

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