Are you at risk of being underinsured? Do you know what it means to be underinsured? It is important that you understand and take steps to make sure you are not affected.
Millions of households across the UK have been identified as being at risk of being underinsured.
Research from the Association of British Insurers (ABI) reveals some 20% of households in the UK could be affected.
To help prevent households across the UK being underinsured, Direct Line’s SELECT Premier Insurance has launched new unlimited contents cover, ensuring householders are completely covered.
This means that if a policyholder’s property was damaged in a disaster such as a fire or flood, there is no limit on the total amount paid out to repair the damage or for replacing lost and destroyed goods or furnishings.
Cover for valuables including fine art, antiques, collection jewellery and watches is included automatically up to £15,000 and this can be increased if required.
Also, householders will benefit from not having to list individual valuable items worth under £10,000 when they take out a new policy.
For items over £10,000, you will continue to specify these to ensure they are completely protected.
Another positive when comparing this policy with other standard home insurance policies, is that personal possessions are covered worldwide under the terms of the policy; you do not need to be insured separately.
Policies also include buildings cover with an unlimited rebuild cost, meaning that the full cost of reinstating the home will be covered if disaster strikes.
Understandably many householders do not know the rebuild cost of their home, so those taking out this policy can relax knowing they are fully covered.
Nick Brabham, head of SELECT Premier Insurance, commented: “Far too many people are underinsured and could find themselves out of pocket, unable to repair their homes or replace cherished items, if a disaster were to strike such as they were burgled or their home was flooded.
“By offering a comprehensive product, with high single items limits for jewellery and art, people can be rest assured they will receive the full value of items if they have to make a claim.
They can also relax knowing they do not need to keep making updates to their cover throughout the duration of the policy.”
In addition, Direct Line’s SELECT Premier Insurance makes no provision for discounted cash settlements if people are claiming for items such as jewellery, so they will receive the full insured value of the item or can choose to have the item replaced.
This is a different from other standard policies which may provide a discounted cash settlement lower than the insured value of the item, perhaps a lost or stolen ring or watch for example.
If you are a cyclist, another positive is that the there is no upper limit on the value claimed for a bike as long as it has been locked to a fixed structure.
Policyholders are advised to retain any receipts for items purchased and to take videos or photographs of their home and its contents.
In addition, where jewellery and watches are concerned it is advisable to have photographs with you wearing the items with your face in frame, as well as making sure you keep the purchase receipt and any quality certification such as a GIA (Diamond grading) report.
By keeping such details and images it will help should you need to make a claim.