What happens if you don't have the right amount of insurance cover
In the event of a claim an insurance company reserves the right to send a claims assessor to review your claim and assesses if the claim is valid. one thing an assessor looks into is if you have the right amount of cover in the first place as this can be a negotiating tool often used by claims assessors.
Imagine, you have bought an insurance policy which provides you with £25000 of contents insurance cover but you have a claim for £1000 and an assessor is sent to visit. When he 'assesses' what cover you actually needed he feels that you required £50,000 and you are therefore 50%
underinsured. This means that as you were only paying for 50% of the required cover, the insurance company is only going to pay 50% of the claim sum or £500 in this example.
Also keep receipts for major purchases. If you have bought a new television at a cost of £3000 keep the receipt, as most insurance policies are arranged on a new for old basis and having the receipt will ensure you gain a replacement item of the same standard at the time of the claim, not the purchase.
Most insurance companies work on the basis of trust and part of our role as advisers is to interpret the jargon claims departments and assessors use which can confuse and frustrate clients.
If you'd like to know more about property insurance then contact us today or get an online insurance quotation. |
