The growing problem of underinsurance

By Lisa Parker, director, West Craven Insurance Services.

As business owners many of us are increasingly being made aware of the problem of underinsurance within our businesses.

What you may not be aware of is the growing number of High Net Worth individuals having under insurance on their personal insurances too, particularly on their properties and contents.

We provide a full risk management service offering help and advice with this process, both business and personal.

The issue of policyholders underinsuring their property is a growing one. This is of particular concern in the HNW sector because they are typically more likely to own more valuables such as art, antiques and jewellery.

Items like these normally increase in value but often written valuations are outdated and woefully inadequate.

Combined with escalating value, the ‘gap’ between the insured value and the true market worth of an item may be growing.

Many policyholders mistakenly assume that insurers will simply ‘pay out’ up to the sum insured listed on their policy schedule. In fact, this is not always the case. If insurers can determine that the item(s) claimed for were not insured adequately, the insurers may apply the ‘average condition’.

Insurance is complicated, jargon-riddled and time consuming. However with advice from a broker who can deliver the best bespoke package for you should simplify the process.

West Craven Insurance Services, like any high quality specialist commercial and HNW broker, can help you establish not only the true value of your assets, but also to find the best value policy that reflects your needs.We pride ourselves on taking the time to understand our client’s particular requirements both personal and commercial, and ensuring that they are adequately covered without purchasing cover which isn’t required. Can you afford not to?