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Underinsurance blights 50% of property claims

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  • Underinsurance blights 50% of property claims

    Norwich Union (NU) is warning UK property owners that they are putting themselves at risk by not insuring their properties to the full reinstatement value. The insurer carried out 128 valuations as a sample for a recent survey and found that 86% of the properties involved were significantly underinsured, to the tune of a [...]

    More: Underinsurance blights 50% of property claims

  • #2
    It really doesn't surprise me that there are many people out there under-insured. What does surprise me is that it is as high as 86%!!! It is vital to get this right and I'm am still shocked by the number of people who contact our office and seem to not be sure what their sum insured is. As an insurer we cannot provide any advice on what it should be but always point out that the only accurate way is from a professional survey. There are some calculators on the internet that give an indication of the rebuilding cost, but it is just that - an INDICATION. They shouldn't be used for insurance purposes. What some people also do not realise is that if you are under-insured, it affects the smaller claims as well where the insurer will apply the percentage you are under-insured to the claim you are making (i.e. insured for £100k but rebuild is £200k means a claim for £6k will only be paid out £3k - and some may refuse to pay out altogether).
    UK Landlord Insurance Specialist


    • #3
      surely you have to treat these figures with a great deal of trepidation. Firstly 128 homes is a tiny sample size. Also the fact that it is coming directly from a insurer automatically makes you question the facts. Also in what areas of the country were these surveys carried out and what types of claims result in the under insurance.

      Forgive my skepticism but i just think these figures will naturally be skewed towards the insurer
      Find A Flatmate