What have we learnt from Claims during a Pandemic?
When it comes time to making a claim whether it’s a pandemic or not, most people want to know if they have the appropriate cover in place. Am I covered?….It’s generally the first question we’re asked at claim time. So what have we learnt from Claims during a Pandemic?
From our point of view, our number one goal when we place insurance has always been to ensure as much as possible that clients have the cover they need. In some circumstances, we do occasionally come across the situation where insufficient cover is in place, the cover has been reduced by an insured to ensure affordability or the cover hasn’t been updated to reflect the current activities of an insured or their tenants in the case of commercial property insurance. Some occupations of tenants carry a higher level of risk and unoccupancy also carries a higher level of risk. The pandemic may have created a set of circumstances for you as a property owner involving a higher level of risk and it’s our job to assist you navigating this.
Why do people reduce their insurance cover
People can be very price conscious, especially when premiums are increasing year after year. One of the first things many people want to do is to reduce or limit their cover or lower their sums insured on the insurance cover they take out to help reduce their premium. But this begs the question…Is this a good value for money strategy and how can you avoid underinsurance?
Underinsurance is a complex area, and there are various ways underinsurance can impact a business or individual at claim time. Often, the Sum Insured is inadequate and the insurer may only pay a proportion of the cost of the damages. In this situation, the insurer will only pay an amount that’s proportionate to the actual Sum Insured, relative to what the sum insured should have been.
The question often asked is who pays the difference? Well, in the case of underinsurance, it’s often you as the insured.
Solving the Problem
The best way to solve this issue is to insure the building or business correctly in the first place. A valuer or builder can assist in determining the appropriate Sum Insured for a property as they have a current understanding of the property market. We have building calculators on our website to help determine an appropriate Sum Insured as well. As with all of these things, the result produced by the calculator depends on the amount of information available and its accuracy.
If you’re not sure on the insurance covers you need for your property, or whether they are appropriate for the current market, having a conversation with a Qualified Professional Insurance Broker can help. Give us a call to see how we can help you. Contact Us Here