So when it comes to insurance, it’s entirely understandable that you might search online for a quote and go with the lowest price with good reviews (when you can purchase insurance online) or simply renew your existing policy without a review. It can be a time consuming task and you’ll have a list of hundreds of other things to do.
But here’s the thing. When something goes wrong and you need to make a claim, that’s when you learn whether the cover you have actually reflects your needs.
Underinsurance: A Hidden Threat
There’s one headline that home and business owners of all shops and sizes should be aware of. Underinsurance. Underinsurance is often revealed when you need to make a claim, possibly when it’s too late.
Several factors contribute to underinsurance: Outdated property valuations, business growth without policy updates, misunderstanding policy terms, focusing solely on premiums and neglecting emerging risks.
Around 70% of UK properties are underinsured and on average, these properties are only covered for around 67% of their rebuild cost. This means homeowners and landlords could face a substantial shortfall if they needed to make a claim.
Being underinsured can mean a claim not being paid out at all or only a portion. This can be your property, business, or motor.
What type of cover usually gets missed?
As a broker, our job is more than simply completing a form and sending it to an insurer. We ask to the questions to learn about you and your property or business.
- What possessions or stock do you have?
- What would you actually lose if the worst was to happen?
- How much income could you lose if your business was unable to trade?
Plus critically: what do you think you’re insured for versus what are you actually insured for? The gap between those last two answers is where the value of a true broker is presented.
Someone who’s in your corner
Our greatest strength and most undervalued asset is that what we offer isn’t the policy itself. It’s the relationship.
When you’re looking or renewing a policy, we’ll complete a insurance review. Different properties, industries and businesses face different risks. A one fits all type insurance solution is more than likely not going to be suitable.
Anyone who’s had to undergo an insurance claim will know it can be a stressful and time consuming experience. Whether it was caused by a fire, a flood, or theft, it’s already a difficult moment in time. What follows shouldn’t compound on that. That’s where we take the stress away and support you through the claims process.
A claim can be complicated whether it’s your home or business. Therefore, having someone who understands the policy language, who knows the process intimately, and who is committed to representing your position is not a luxury. It’s a practical necessity.
As a broker, we help to bring a sense of claim around your claim and to support you through the process. We can push back when the first offer doesn’t reflect what was lost. Additionally, we have claim providers who can bring extra support and who put your best interests first.
The right question
The wrong question is whether or not you need a broker.
The right question to ask is: “if something to happen tomorrow to my home or business, would I be covered?”
A broker isn’t there to complicate things. Our highly experienced and knowledgeable insurance brokers are here to arrange an insurance policy that supports you through what can be a difficult time. We don’t just do insurance products, we do something considerably more valuable. Throughout the lifetime of your policy, we’re here for you.
A policy shouldn’t be renewed every year, there should be a full insurance review. What you might not see as a significant change could mean changes to your policy. Don’t wait until you need to make a claim to find out that you’re not covered.
Get in touch for a no-obligation discussion about your insurance requirements, find your local insurance broker or feel free to speak any of our teams and we’ll be more than happy to conduct a free insurance review.
