Could your Home or Business be underinsured? Why it is crucial to get it right…


With people turning to the Internet, we have noticed a surge in people coming to us for advice because they have taken out a policy online and then been let down when they have needed to make a claim.  This can be because they misunderstood the insurance they were buying. The cheapest policy can always be tempting, however if it does not insure you correctly it swiftly becomes a complete waste of money.

With regards to Business Insurance one size does definitely not fit all and businesses could have issues if;

1)You haven’t had your business property professionally valued for some time

2)You are using the written down value of plant and machinery from your accounts rather than replacement cost

3)You have altered or extended the property

4)Your property insurance cover has been based on the market value and not the cost to rebuild the property.

5)You are now VAT registered

6)You have had some new plant or machinery that you haven’t told your insurer about.

7)Have a great few months – If you are busy then chances are the stock levels, distribution and hopefully profits will increase. It is important that your policy tracks your current trading levels.

8) You have purchased new IT equipment or extra stock.



Your Home could be under insured if;

1)You don’t have a high enough re-build figure

2)You have underestimated the amount of contents that you have – Insurers provide “new for old” replacement so if your living room has carpets, curtains, furniture, electrical items and other contents. You need to make sure you allow for the new replacement cost.

3)If you have antiques, paintings, or high value items at home, these may need to be specified and have a current valuation to define the replacement value

4)If you have jewellery, watches, bikes or sports equipment these often need to be specified on the policy and it is essential to get a current professional valuation of this equipment.

5)Prevent under insurance by notifying your insurer of policy changes  – if you intend to have building work done, you will need to advise your insurers and you should ask for written confirmation that all your contractors are insured before they work on your property.


If you have any questions or are concerned that your Home, Business or Property may be under insured then please do get in touch.

We will do the hard work for you and you may also be pleasantly surprised that having access to a wide variety of insurers means we will be a able to negotiate a competitive price for you.

If you feel you would benefit from a free quote and advice, simply complete the form below or call our office on 01432 268 007.

AUTHOR: Helen Clarke

DATE: 3rd November, 2017

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