The insurance industry (and us) continually hark on to our clients being insured correctly and not to underinsure.
A lot of people on the other hand want to save money by reducing, or not disclosing, the correct Sum Insured for their property.
Unfortunately, we have a recent real life example whereby one of our clients did not heed our advice of putting down the correct sum insured for his building.
A few months later, he was hit by an arson attack which resulted in his property being burnt to a cinder.
Even more unfortunate for him, the loss adjuster who dealt with his claim found his property was underinsured by £100,000 or 38% of what it should have been.
By saving a couple of hundred pounds of premium, this person is now out of pocket to the tune of £100,000 which he will now have to find from his own resources (or borrow).
Is it really worth it ?
There is a very simple solution to this by getting a surveyor to do a survey and correctly value the property. It is highly invaluable and could save you financial headaches in the event of a claim.
Moreover, make sure your insurance policy is Index Linked which may help to mitigate underinsurance.
Think carefully about this or take immediate action to avoid a similar disaster happening to you.
For any Help or Assistance with Property Insurance, call our Property Team on 0207 731 3700 to discuss or drop us an email.