We all know whether we are Insured or not Insured but being Insured is not the same as being covered? Unfortunately, most of us only discover that we are not fully covered when we have to make a claim and only then does the issue of under-insurance come up. Under-insurance occurs when the sums insured for your property are lower than the current rebuild values of the property. A lot of people make the mistake of insuring their house or business property for what they think the sales value of the property is. The rebuild value of a property takes into consideration the deconstruction, removal of debris, planning and associated professional costs to reinstate the building as was in consideration of the current building regulations. Also, the outbuildings such as sheds and garages, boundary walls and pathways all form part of the rebuild value of the property. The risk of being under-insured is that you will be deducted that percentage of any claim you have, so if your property suffers a €10,000 damage loss and you are 40% under-insured, your insurer will only pay out €6,000 for the claim and you will have to fund the €4,000 difference from your own personal finances.
In order to ensure that you are properly covered you can have a Value At Risk Assessment done which will assess your property against your current policy and highlight any areas you may need to address. Don’t fall into the trap of having a false sense of security about your insurance and make sure you have the proper level of cover by arranging a VAR assessment. Please call 1800 277377 to arrange a consultation.
