Many people or businesses underestimate the value of their home or buildings and the potential costs a rebuild could incur.
Underinsuring your property will cost you a lot more than just inconvenience. Most insurers will expect you to give an accurate value of your building and if you under-insure could result in your claim being reduced in proportion to your miscalculation. This could leave you with a large bill as you look to make up the short fall in your claim.
The vast majority of property owners risk significant financial loss by underinsuring their buildings.*
In 2008-2009 and a staggering 77% of the buildings surveyed were under-valued. As a result of the re-valuations undertaken an approximate 50-55% uplift in reinstatement costs were required.*
*Source: according to research undertaken by Barrett Corp & Harrington (BCH)
With the significant changes in housing and building prices over the last ten years, you may still be basing your valuation on historic prices.
|Example:||(Figures based on standard household insurance policy wording)
|Your home is worth:||£420,000
|Using an old valuation of your home, you've insured it for:||£300,000 (under insured by £120,000 - 28.5%)
|You have a fire and make a claim of:||£143,000
|But because of under-valuation, you're likely to get:||£78,000 (Amount received is 71.5% of claim amount)
|Leaving you to find:||£57,000
CLA Insurance Services has a negotiated a special arrangement with BCH to provide a valuation service at significantly lower costs on their standard valuation fee. In addition to demonstrate our commitment to help you prevent underinsurance, both CLAIS and your insurer will also contribute to the cost. This overall financial support could result in reducing the standard fee by up to 40%.