Making a Claim

When it comes time to making a claim, everyone wants to know if they have the appropriate cover in place. It’s always the first question we’re asked at claim time…Am I Covered?

Our number one goal when we place insurance is to make sure clients have the cover they need, however we occasionally do come across the situation where insufficient cover is in place, the cover has been reduced or it’s not appropriate for their current circumstances.

So the first question is why?

People can be very price conscious, especially when premiums are increasing. One of the first things people want to do is to reduce their cover or limit the cover they take out to reduce their premium. But this begs the question…Is this a good value for money strategy?


Underinsurance is a complex area, and there are various ways underinsurance can impact a business or individual. 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 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 the property. If it’s a business you’re insuring, a qualified insurance broker is invaluable on your team. 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, or whether they are appropriate for your current situation, having a conversation with a Qualified Professional Insurance Broker can help. Give us a call to see how we can help you protect what’s important to you. Contact Us Here