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Did you know that, on average, properties are only covered for 63% of the value they should be? This could mean that in the event of a disaster, your insurer may apply the ‘average clause’ which means you would only receive a percentage of what you need to repair the damage caused by the disaster.
This year, we’re encouraging homeowners and commercial property owners to review their existing cover to check that their property is insured for the amount it should be.
To avoid being underinsured, we cannot stress the importance of reviewing your policy documents regularly and updating your policy promptly to account for any renovation work or extensions.
Striking the right balance between not underinsuring or overinsuring your property can be tricky. The responsibility falls on you as the property owner to provide your insurer with the correct figure your building needs to be insured for.
If in doubt speak to your broker and consider the last time the building sum insured was calculated.
We’re committed to helping you reduce the level of underinsurance, which is why we partner with RebuildCostASSESSMENT.com to offer property valuations to give you peace of mind that you are fully covered. RebuildCostASSESSMENT assesses your property to provide you with a reliable rebuild cost from property reinstatement experts. To learn more about our valuations, speak to a member of our team on 03447 368 249.
In March 2023, the UK recorded its coldest March night since 2010 after temperatures in the Highlands fell to -15.4C. Why not make sure you are prepared with our top tips.
Top tips for planning ahead for cold temperatures
Try to invest in making your home as energy efficient as possible when it comes to heating. By draught-proofing your house you can reduce heat loss.
Weatherproof your home by insulating your windows, doors, walls, and attic. You can also install radiator insulation and pipe insulation, hang thick curtains, block off your chimney, and add draught excluders to your doors and letterbox.
Despite the cost of living, try to keep heating on frost-protection at minimum. Even if your pipes are insulated, they are still at risk of freezing and bursting, which could prove costly.
Set up fans to blow heat into cold rooms and open cabinet doors so warm air can reach the pipes under sinks. If you have exposed pipes inside closets or pantries, leave doors open.
Clear gutters of fallen leaves and debris to avoid overflowing water building up and becoming a slip hazard. Similarly, disconnect garden hoses from outdoor faucets.
Grit paths to reduce the likelihood of slips and trips.
Have you ever heard of index linking? This is when an insurer adds a percentage to a customer’s buildings sum insured to protect them from underinsurance.
It acts as a buffer between the sum insured value and the actual rebuild value, so you don’t have to update your policy constantly to account for inflation. For example, if the price of building materials were to increase, so long as your house was insured for the correct value at the start of the policy period and your policy includes index linking, then you’re protected.
Once you have calculated the correct rebuild cost of your home and completed your contents inventory, compare your findings with your existing cover. If your existing cover does not provide adequate protection, look to either increasing cover or moving to a policy which does.
Once you have reviewed your existing cover, if you have identified any issues with your current policy, discuss these findings with your broker so that they know what adjustments you require. Since you will now have accurate, up-to-date information for your property rebuild cost and the value of your contents, this will make the task much easier.
When it comes to insurance, it is prudent that you shop around when your policy is coming to an end and get quotes from multiple providers to ensure you are getting the best rates. Your broker will be able to assist you in this process.
Congratulations! If you’ve completed the previous steps, you may have now safely avoided falling into the underinsurance trap. Give yourself a pat on the back.
However, that doesn’t mean you are done. Now you need to regularly reassess your home to keep on top of any changes that arise. We suggest that you do this annually and after any major renovation work.
We offer specialist home insurance policies tailored to your needs. Contact our home insurance team today for a quote on 03447 368 249 or see our home insurance page.
Consistent with our policy when giving comments and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems, we recommend that professional advice be sought.
Sources:
1: https://www.rebuildcostassessment.com/post/annual-infographic-2024
While there’s no one-size-fits-all answer as the cost of cover can vary greatly depending on a range of factors we have pulled together this helpful guide, to take a look at the typical price range of the different types of plumbers insurance so you know what to expect.
Whether it’s a holiday home, a weekend retreat or an inherited family property, it’s important to make sure it’s properly protected. Second home insurance is designed to do just that.
However, whether it’s a property that you keep for yourself, share with friends and family, or rent to guests, a holiday home often comes with additional considerations and costs.
