The Big Cover Check

Are You Under-Insured Without Realising?

What does being underinsured actually mean? You’d imagine anyone who’s under-insured doesn’t realise it.

Underinsurance is when your active cover isn’t enough to replace or repair what you need it to when it comes to making an insurance claim.

If you’re underinsured, you’ll likely have gaps in your cover – thinking you’re safe when you need to fall back on your policy, when in fact, you’re left unprotected.

RebuildCostAssessment revealed in September 2024 that 76% of homes in the UK are underinsured – make sure you’re not part of that statistic!

How Do You Know If You’re Underinsured?

Have you renovated, extended, or upgraded your home recently? If you have and haven’t updated your insurance to match these life updates, you could be left unprotected.

Do you have new valuables or gadgets in your home? These may need to be added to your policy, in case they’re worth more than the single item limit. Avoid your policy being a victim of underinsurance.

Have you checked the rebuild cost of your home against your sum insured? If you’re paying for an amount that falls beneath the rebuild cost of your home, your insurer may only pay up to a certain amount in the event of a claim.

The Best Time to Think About Your Policy

We recommend regular updates to your policy when needed, but making sure your cover is accurate before renewal is essential to avoiding underinsurance.

Before your policy ticks over for another year, ensure your cover actually fulfils all your needs, keeping your home safe.

How to Make Sure You’re Fully Covered

Regularly review your policy and update it when your circumstances change. This helps keep your policy accurate.

Use a rebuild cost calculator to ensure your sum insured is accurate. You can use the Association of British Insurer’s rebuild calculator here – https://abi.bcis.co.uk/.

Check if high-value items need to be listed separately on your policy. These possessions may be included up to a certain amount, but it’s good practice to check.

Speak to your insurer or adviser for guidance on the right level of cover, or you can contact us on 02920 265 265.