Under-insurance

After being with the same Insurer for a number of years, there can be an element of complacency on the part of the Insurer and an acceptance by the client that they are continuing to be offered the best terms available.

Terms can vary from one Insurer to another from the way they view a risk and a marketing exercise can often produce better terms and cover, not to mention a more competitive premium. That same exercise will of course sometimes confirm that the current Insurer remains the best option but this too is periodically worthwhile.

Because a £60,000 claim had been incorrectly recorded, simply as a subsidence issue, when in fact a flood was a more accurate description and because the claim dating back 5 years was still on the existing Insurer’s records, they were quoting a renewal premium of £6,462.

The sums insured for this premium were £865,000 for the buildings, £241,500 for contents and £78,000 for jewellery and antiques. In addition a £2500 excess imposed following the claim had never been reduced.

When we were asked to quote, a visit to the client revealed an issue of under-insurance as far as the building was concerned. After carrying out a market review and discussing the risk details directly with underwriters, cover was arranged with an alternative Insurer with no loss of cover or benefits whatsoever, the new annual premium £3,517, the buildings sum insured increased to £1.5m and the policy excess reduced to £250.

Are you worried you may be under-insured? We can help, contact us today.