Do you know the Consequences of being under-insured?
When was the last time you did a walk through and calculated how much it would cost to replace everything at the current market value?
Believe it or not 50% of businesses in the UK are under-insured.
Yes, you may save some £££’s on your premium, but if you don’t insure on the correct figures to rebuild and replace, could your business survive?
If a fire damages your property, causing repairs costing £100,000 and the building’s total declared reinstatement insurance value is £1 million – most owners assume they have more than adequate cover.
However, if the insurer can establish the actual cost to rebuild the property is £1.2 million they will tell you that you haven’t insured your full amount. It reduces the claim via a ‘condition of average’ clause.
This mean that the claim will be reduced by the same proportion as the amount of ‘under’ insurance.
So, you would only get 83% of your claim. Which may not sound like a lot, but it’s £17,000 that you’re not getting. Can you deal with that?
What we recommend is making sure that you catalogue your contents and get a valuation done on your building. Yes, it’ll cost you a few hundred £££ but what’s that compared to thousands?
Ring your insurer to get advice and support to ensure this doesn’t happen to you – could your business suffer from such a loss?
0121 679 7265