Why you should have the right amount of insurance.

Very important in the case of a total rebuild and even more so for a business where disruption to trade can be a major factor not just buildings and contents.

Although insurance is something we hope never to need, it is essential if you want to be able to continue, after major damage or disruption, your life or business with the least amount of interruption.

In the event of a major catastrophe, your business or home burned down, very few people or businesses would have enough cash to start over. Leveraging an insurance premium against a total rebuild is a good trade off.

Next having decided that insurance cover is needed, you need to decided what you need insured.

Fire Damage

Over Insurance

Benefits to you, none. You can not get more than your claim.

Benefits to the insurance company, more of your money for no risk

Under Insurance

Benefits to you, worse than none. Your full claim will not be covered.
Loss to the insurance company, none as they will just pay out a proportion of the claim as explained in the next paragraph.

At one time things were a bit more relaxed and provided you had enough insurance to cover your claim, you were covered. For example if your insurance cover was for 100,000 and you made a claim of 50,000 you had enough cover and everone was happy.

Well as it turns out the insurance companies were not that happy, and unfortunately times have changed. Insurance companies now apply an averaging rule.

Man with paperwork

Average Clause

What does this mean to you the insuree?

In the previous example of a 50,000 claim. If we assume the case of total disaster, house destroyed or business not only destroyed but unable to trade for a prolonged period, the theoritical damage could be 500,000. Your insurance was only for 100,000, the averaging rule means that you only had 1/5 of the insurance the insurance company thinks you should have had, so they only pay out 1/5 of your claim. This is an exaggerated example but it shows the principle involved.

Whether you feel this is fair or unfair this is what happens. Therefore making sure you have both the correct amount insurance cover, and for the right things is essential. 

What we offer.

As a fully qualified, SCSI Registered, Chartered Building Surveyor with many years of experience dealing with insurance claims I can accurately calculate the amount of insurance and what risks you need to be covered for.

Major benefits to you.

You will not be paying more for your insurance than you need to.

You will have the proper cover for any claim you might make in order to get all the damages and losses paid out in full.


Man with clipboard

To find out more call us or fill in the form and Trevor or one of the team will call you.