HOME BUILDINGS INSURANCE: WHY CHECK?
At RebuildCostASSESSMENT.com we assess more than 3,000 homes of significant value every year. Our data shows that more than 90% of them are either over or underinsured. This means there is a strong chance that your household property is not covered for the right amount. The implications of this can be extremely costly, sometimes so costly you could lose your home!
There are all kinds of reasons why your building may not be covered for the correct amount. For example, many people insure for the "market value" of their property. But that is incorrect. Properties should always be insured for the actual cost to rebuild.
So what are the implications?
Let's begin with over-insurance, which affects around one in 5 homeowners. It's true that it is better to be over-insured than under-insured. You'll find out why in a moment. However, if your home is over-insured, on average you will paying around 20% too much every year for your household buildings cover. Over the years this unnecessary expense can seriously add up.
Under-insurance can have far more severe consequences. This is because insurers have something they call the “Average Clause”. Sounds complicated, but it’s not. Here’s how it works: Let’s say your property is insured for £600,000, but the actual cost to rebuild should be £1,000,000. Here, any insurance claim you make for the property could be reduced by 40%. In this example you would need to find £400,000 of your own money to cover the cost of rebuilding your property following a major incident, such as a fire that completely destroys your home. Could you afford £400,000? For some homeowners, a reduced claims payment as a result of under-insurance has meant they've had to significantly down-size their property. Imagine losing the home you'd spent years working so hard to build up! More than two thirds of household properties are are underinsured and are normally covered for less than 70% of their correct rebuild cost. Is your home one of them?
So what can you do?
The simple solution is to insure for the correct amount. Normally, this involves finding a trusted expert who visits your home to complete a professional assessment. This can be both time-consuming and expensive. However, at RebuildCostASSESSMENT.com we offer a unique low-cost online service. For just £180.00 (incl VAT) we can provide you with a comprehensive Rebuild Cost Assessment (RCA) report without ever having to visit your home. You can find out more on how we can do this here. We also offer on-site assessments as a premium service at unbeatable prices.
Our report advises you of the rebuild cost of your property and guides you on what action to take. As we are a 'Regulated by RICS' (Royal Institution of Chartered Surveyors) organisation almost all of the UK's major insurers will remove the Average Clause from your policy as long as you insure for the amount we recommend in our RCA report. Should a claim occur, you will also have a RICS based report immediately to hand, which will put you in an extremely strong position should you ever face a disputed insurance claim..
What happens next?
Your choice is simple. Do you want to risk the potentially severe consequences of insuring your home for the wrong amount, or do you want the peace of mind and assurance our trusted service can provide?