Under insurance on house valuations
16th June 2008
I was party to a discussion the other day which made me think.
Apparently many people's houses are grossley under insured in terms of fire damage etc.The chances of a total loss may be remote but many people do not understand the "averaging" concept applied by insurers.
For example, if your house has an insurance valuation of £100,000 and you insure it for £50,000 then upon submitting a claim for partial damage by fire of £40,000 then you are only likely to get £20,000 as the insurer will maintain that you were carrying half the risk.
Many people are at risk as rebuilding costs have rocketed in the last 2 years and many people fail to raise their insurance cover after major improvements or extending.
If you feel you be out of step then give our professional services team a call on 0800 393595 who will pleased to advise on how to get the right amount of cover.
