Underinsurance and the Dangers for You and Your Clients
Underinsurance is not uncommon in the UK for all lines of insurance, including property. 2021 data from
Rebuild Cost Assessment shows that 80% of UK properties are underinsured. To learn more about the dangers of underinsurance and what you can do to help mitigate this for you and your clients see this article in full at
www.lawskills.co.uk.
What is underinsurance?
Underinsurance is when the rebuild or replacement cost of a building and/or contents exceeds the amount of cover provided by an insurance policy. Rebuild Cost Assessment has found that underinsured properties are covered on average for only 68% of the amount
they should be.
What will this mean for a policyholder in the event of a claim?
In the event of a claim, if they are found to be underinsured, the amount the policyholder receives might not cover the costs of replacing or repairing the damage. If the building cannot be restored to a liveable condition, this could mean the occupants being
without a home.
Why has underinsurance become more of an issue?
Underinsurance has always been a pitfall to avoid. However, in recent years the impact has increased due to the global pressure on prices. In the same way that your weekly grocery shop and gas and electricity prices are increasing, the rebuild and labour costs
are going up as supply and demand for materials and transport are struggling to keep up, driving costs higher.
How you and your clients can mitigate against this risk
It’s vital that the amount your property is insured for is accurate. To learn what can be done to help ensure a property has a suitable level of cover, and what the issue of underinsurance means for solicitors, as well as how Vasek can help to find suitable
cover for your needs read more
here.
We can provide you with a quick online quote for homes that are empty due to probate or the owner moving into care – please visit our dedicated page and get a
quote today.
Alternatively, if you would like to discuss a quote or our
products, call me on
07833446070 or email
wayne.shinn@vasek.co.uk.
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