Under insurance - A warning !

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
19/11/2009 10:48

Anther Insurance tip from yer "Uncle Nick"....





The buildings, terraces and swimming pool must be insured for their true re-build cost, otherwise your insurer could settle your claim in the amount of the under insurance (commonly called “average”).



For example - You are advised to insure your swimming pool for half it’s rebuild cost (on the basis that it can’t be completely destroyed !) – what they fail to mention is that if you don’t insure for the full re-building cost, your insurers could under pay your claim, ie: Swimming pool replacement £20,000 but only insured for £10,000 (or 50% underinsured) – so maximum payable £5,000 – You have been warned !