Many homeowners don’t realise that their homes are only insured for 63% of what they should be. This means that if something happens and you need to make a claim, you might receive just a fraction of what you need to repair the damages. The rest will need to come out of your pocket.
That’s why it’s important for property owners to carefully evaluate their existing coverage to ensure proper protection for their valuable assets. Here’s what you should consider:
Step 1: Check your policy
Regularly reviewing your insurance is important, especially if you’ve made any major changes like renovations or extensions.
Finding the right balance of cover can be challenging but remember that, as the property owner, you are responsible for providing your insurer with accurate figures regarding your building’s rebuild cost.
If you’re not sure, it’s worth seeking professional support.
Step 2: Determine your home’s actual rebuild cost
At Allied Wessex, we’re dedicated to helping reduce underinsurance. Our team can help point you in the direction of experts who dedicate their time to assessing the true rebuild cost of commercial and personal buildings.
Step 3: Make a list of everything you own
It’s important to consider what’s inside your house, as well as the building itself. If you say your belongings are worth less than they really are, you might only get a small amount of money back if they’re damaged or stolen.
Write down everything you own and how much each item costs. For expensive things, take pictures and keep receipts. Also, write down any serial numbers.
Remember that some high value items might need standalone cover. Check how much your insurance covers for expensive items and whether they’re covered when taken outside of the house.
Step 4: Don’t forget inflation
Have you heard about index linking? It’s when insurers automatically add a percentage to your coverage each year to protect against underinsurance.
This helps to protect you if, for example, building materials get more expensive over time. As long as your house was insured for the right amount at the start of the year, you should be okay.
Step 5: Compare your findings
After working out your home’s correct rebuild cost and completing your list of contents, compare these figures with your existing coverage. If your current policy doesn’t provide enough protection, you may need to increase your coverage or move to a different policy.
Step 6: Make changes to your policy
Once you’ve reviewed your policy and identified any issues, discuss your findings with your broker to make any changes you need. Having accurate, current information about your property’s rebuild cost and contents value will make this process easier.
Make sure to shop around and compare quotes from multiple providers when your policy approaches renewal to ensure competitive rates. Your broker can assist with this comparison process.
Step 7: Regularly assess your cover
Congratulations! By completing the previous steps, you’ve probably avoided being underinsured. But you’re not done yet. Make sure to review your insurance cover annually and after any major work.
Get home insurance that fits your needs
At Allied Wessex, we offer specialised home insurance policies tailored to your specific requirements. Contact our specialists team today for a no-obligation chat on 01793 850 441.
Consistent with our policy when providing non-specific comments and advice, we cannot assume legal responsibility for the accuracy of any particular statement. For specific issues, we recommend seeking professional guidance.
