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The Building of your home could be Over-Insured!
What does it matter? Your feedback indicates that the Building of your home is Over-Insured and if you claim the payment could be less than the insured amount. This could be particularly difficult if the Building has been insured for many years and the value never adjusted.
Over-Insurance is a term used when something is insured for more than its actual value. The opposite is true when your property is Under-Insured for less than it is worth. This is applied differently to the Contents or Building of your home than it is to your car or motorcycle.
Unless you collect expensive jewellery or art the two most expensive items you purchase could be your house and car. To rest assured it is important to ask if the value of your property is over or under insured?
The replacement value of your home is relative to market trends and inflation. It is therefore best to insure your home for the new replacement value, and although most insurance policies automatically increase with inflation this is often not enough. This is due to the normal appreciation or depreciation in the value and is also influenced by improvements or modifications done to your home.
Regularly check that your policy information is updated and the insured amounts are correct. To get an idea you can also ask knowledgeable people to give an estimate such as a reputable property surveyor. Your insurance broker would also be able to assist you as well as our preferred service providers.
The online calculators and information provided can help you and your broker correctly insure your property which could result hassle free claims or reduced premiums.
close
The Building of your home could be Under-Insured!
What does it matter? Your feedback indicates that the Building of your home is Under-Insured and if you claim the payment could be less than the actual replacement cost. This could be particularly difficult if the building is financed by a bank.
Under-Insurance is a term used when something is insured for less than its actual value. The opposite is true when your property is Over-Insured for more than it is worth. This is applied differently to the Contents or Building of your home than it is to your car or motorcycle.
Unless you collect expensive jewellery or art the two most expensive items you purchase could be your house and car. To rest assured it is important to ask if the value of your property is over or under insured?
The replacement value of your home is relative to market trends and inflation. It is therefore best to insure your home for the new replacement value, and although most insurance policies automatically increase with inflation this is often not enough. This is due to the normal appreciation or depreciation in the value and is also influenced by improvements or modifications done to your home.
Regularly check that your policy information is updated and the insured amounts are correct. To get an idea you can also ask knowledgeable people to give an estimate such as a reputable property surveyor. Your insurance broker would also be able to assist you as well as our preferred service providers.
The online calculators and information provided can help you and your broker correctly insure your property which could result hassle free claims or reduced premiums.
