Eighty six per cent of properties surveyed in research carried out on behalf of Aviva Insurance were found to be significantly underinsured, which has led letting specialist Leaders to issue a warning to landlords about the risks they face if their properties are not insured to the full reinstatement value.
As Hepburns Insurance Services Ltd Business Development Manager, working exclusively with Leaders, Charles Foster (pictured) explains: “In the event of a claim, if you are found to be underinsured, most insurers will apply ‘average’ allowing them to reduce any payments. If a flood causes £75,000 of partial damage and the property is insured for £200,000, but its true reinstatement is £300,000, this would equate to being 1/3rd underinsured. The insurer would then payout a maximum of £50,000.”
Contact Hepburns today to discuss your insurance requirements in more detail.
Call 01534 515151 or email hisl@hepburnsinsurance .com