14th December 2022
How To Protect Yourself From Being Underinsured
There’s A Clause In Your Insurance You Really Need To Know About
Firstly, are you aware of the Average clause?
No? Well insurance can be complicated.
After all, it’s a contract and contracts are always full of conditions and clauses.
When it comes to insuring your building there’s one clause you really need to know about, because THIS CLAUSE can cause big problems if you ever need to make a claim.
It’s called THE AVERAGE CLAUSE and put simply, it means if you insure your building for an amount that’s too low, your insurer can reduce how much they’ll pay out. It’s your insurer’s way of making sure you only get what you pay for.
Here is a short video to further explain the average clause,
Don’t fall victim to the dreaded Average Clause.
Put your buildings insurance right by talking to us today.
Call us on 0161 772 3382 or click here to request a call back from a member of our team.
So, What Can You Do?
There is only one way to make sure you don’t suffer the consequences of the Average Clause and that’s to make sure you insure your buildings for the right amount. And the only reliable way to do this is use a ‘Regulated by RICS ’ property professional who knows all about rebuilding costs.
Underinsurance ‘Made Worse’ By Rising Construction Costs:
With rebuild costs rising rapidly as construction costs increase you could be significantly underinsured if you have not reviewed your sums insured recently. For example:
- According to the Builders Merchants Federation (BMF), prices have risen by between 10% and 15% for products and materials this year.
- However, some products, such as timber, have seen prices go up by 50% and by as much as 100% for oriented strand board (OSB) and other sheet materials, which are all key housebuilding components.
Why Have Building Costs Increased?
There are numerous reasons but some of the main factors point towards the following areas:
- Covid lockdowns and then the re-starting of postponed building projects has increased demand.
- Brexit on imports from the EU.
- Loss of foreign workers in the UK market (estimated at around 1.5 million workers throughout 2020 & 2021).
- Increase demand other countries for materials.
What Can You Do To Protect Yourself From Underinsurance?
- Speak to us today we can advise you on places where you can check your sum insured.
- Visit RICS for more information.
- We can arrange for Rebuild Cost Assessment (Please note there is a charge for this service). The Service provides a professional valuation from a Regulated by RICS organisation.
Avoid being underinsured.
Put your buildings insurance right by talking to us today.
Call us on 0161 772 3382 or click here to request a call back from a member of our team.
