Did you know that if your home or contents is underinsured, and you need to make a claim, your insurer could refuse to make a payment and you might find yourself making up the difference? A scary thought for any homeowner, but especially if your home and possessions are worth a significant amount, if you are a high earner or have invested in valuable items. Research suggests that between two in three and four in five high net worth individuals are under-insured. Could you afford to repair damage or replace your highest valued items yourself?
Undervaluing your possessions
Do you collect vinyl records? Proud owner of a home cinema with high-spec audiovisual equipment, or a personal office stocked with luxury tech? Although fine art and jewellery are often thought of as typically ‘high value’ contents, other possessions such as a guitar collection, specialist equipment or beloved wine cellar, as well as modern luxury furnishings such as hot tubs and underfloor heating, can add massive value to your contents but can easily be overlooked when totting up an estimate for your insurance quote. The average home owners’ contents are worth 20% of the value of their home, but this will likely be higher for those with high value collections, furnishings and artefacts.
One size doesn’t always fit all
Though the market can seem saturated with home insurance policies, simply buying regular home cover rather than a specific High Net Worth policy could be leaving your estate underinsured should disaster strike. As well as ensuring you would receive the correct payout in the case of a loss, opting for a dedicated policy from a specialist insurer could also save you money, as High Net Worth household insurance can include as standard things that may usually be charged as extras, such as outbuildings cover.
Life is fluid, things change and your insurance policy should too. If you make a big new purchase, or a series of smaller ones, make sure you regularly update your policy limits to ensure they reflect what you own. This might mean re-jigging things with your current insurance provider or looking for a new policy altogether – but if your home should fall victim to burglary or weather damage, the little bit of extra effort now will undoubtedly be worth avoiding more potential loss.
Consequences of being under-insured:
The Financial Ombudsman Service has previously warned that insurance companies can claim ‘underinsurance’ to avoid paying compensation to customers who have undervalued their possessions. Not disclosing the full value of their possessions can sometimes be put down to the customer being misled by insurers, or simply be due to the customer assuming a vague guess will be good enough. Often claimants won’t find out that they are underinsured until they try to claim, at which point it is too late and they are faced with a hefty bill.
How can we help?
As well as offering a wide portfolio of Commercial Insurance services, C&M Insurance can also arrange High Net Worth Home and Motor policies for clients just like you. With access to a range of specialist high value property insurers with wide covers, we can find a policy to suit your circumstances. What’s more, as an established, reputable broker, C&M Insurance will make sure you are fully informed about the finer points of your policy.
You could even take out insurance for just a single item, such as a prized piece of art or top-of-the-range soundsystem, whilst High Net Worth Motor cover is perfect for insuring high value vehicles with more complex requirements, including such benefits as access to a temporary replacement vehicle with similar specifications, and covering use of the DVLA retention and transfer service to ensure you keep the rights to your personalised number plates in the case of theft or a write-off.
To get a quote, get in touch with us via our contact page.