Don’t Be ‘Average’?

With it being ‘Insurance Awareness Day’ today, we’re highlighting the importance of ‘THE AVERAGE CLAUSE’.

With the costs of building materials soaring in 2021 due to the pandemic it’s more important than ever to ensure as a homeowner or landlord that your buildings are insured for enough.

A property must be insured for it’s full ‘rebuild’ cost, and must include costs for demolition, debris removal, architect and new surveyor fees.

Towergate estimate that up to 79% of commercial property in the UK (June 2021) could be ‘underinsured’.

How Does Average Work?

A simple example, you insure a property for say £250,000, but the actual rebuild of that property should have been £500,000.
You then come to claim for escape of water damage from a burst pipe costing £10,000 to correct, as you have insured by half of what you should have, your insurance company will only pay you half, so in this case £5,000, leaving you £5,000 short for repairs and having to find it from your own pocket.

Now is the time to review your cover and ensure you’re not underinsured.

We have teamed up with Rebuild Cost Assessment to provide clients with a cost effective online and insurance approved rebuild assessment, for more info just get in contact with us.

There are also free calculators online which will give you a rough idea for your rebuild, but isn’t full proof.

Also click and view their Youtube video below which also gives a quick explanation on ‘The Average Clause’.

https://www.youtube.com/watch?v=SmllrnTQdVQ