In the last clip we talked about the Building Sums Insured and how to work it out?
In this next video we will see how this relates to our second most frequently asked question;
Being 'Under Insured' means the building or contents cover is less than the actual cost to rebuild or replace your property and possessions at today's prices.
And in the event that you are underinsured when making a claim the insurer will apply average.
So what does 'Average' mean? Average means that following a claim, any payment made will be adjusted in proportion to the amount that you are under insured. For example, should you under insure your property by 10% of it's true building sums insured then 'average' would mean your insurer deducting 10% off the amount of your claim.
At Click4quote, we recommend reviewing your sums insured on a regular basis especially at renewal as you may have purchased new furniture for example. Remember to include any additions to your property that you have made such as a new conservatory, kitchen or bathroom and we discussed how to calculate your sums insured in our first video.
You can find your current sums insured on your policy documents and if after reviewing these you find you need to increase them, contact your insurer immediately.
In our next film we will look at 'What is Property Owner's Liability & why do I need it?'
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