Is your home and its contents underinsured?
Studies show that between 70% and 75 per cent of UK high net worth home insurance is actually underinsured*, and with financial consequences tied to property and possessions value, these homeowners face particular risk.
Simon Gubbins, Managing Director at Robison & Co, said: “One common pitfall of high net worth home insurance policies is underinsurance, and owners must be aware of the possible consequences. Many assume insurers will pay the full sum insured. However, if the property is insured below its true reinstatement value, insurers apply an average condition. They then deduct the underinsurance percentage from the final pay-out.”
For example, a home and contents policy for £800 000 meets only 80 per cent of a true value of £1 million. A £100 000 fire loss claim would therefore be settled at £80 000 rather than £100 000. Simon continued: “Underinsurance is frightening but easy to fall into without expert advice.”
Why high net worth home insurance matters
Underinsurance can leave you shouldering large costs. Moreover, rebuilding expenses often rise over time. Therefore, having the correct cover protects both your assets and your peace of mind.
How to avoid underinsuring your high net worth home
If you own a high net worth home, assessing the correct level of cover can be complex. Consequently, seeking professional guidance is highly advisable.
Points to consider when taking out a high net worth home insurance policy
Do you know the true replacement value of your property and contents? A professional valuation reveals accurate rebuild costs and should be reviewed every three years.
Has your home been altered or extended? Changes can dramatically affect rebuild expenses and must be factored in.
Have you accounted for all external features? Outbuildings, pools, courts, gates and garden structures all carry value and require cover.
Is your property listed? Listed status brings extra repair and rebuild costs under planning regulations.
Have you allowed for fees? Surveyors, architects, engineers and VAT add to overall rebuild bills.
What if site clearance is needed? Demolition or clearance work demands specialist contractors and must be costed.
How Robison & Co can help
We specialise in high net worth home insurance. First, we’ll conduct a detailed estate evaluation. Then, we’ll offer a discounted buildings valuation service for high net worth homes, whether or not you proceed with a policy. Finally, we’ll tailor cover to your needs, ask the right questions and handle the legwork to ensure you are not underinsured.
We also offer bespoke cover for fine arts, collections, listed buildings and valuable vehicles. For more details, please get in touch.
70–75 per cent of UK HNW properties are underinsured: 2015 Datamonitor report (https://www.rebuildcostassessment.com/technical-insight/energy-efficiency-properties-underinsurance).
Contact Robison & Co today to a new or existing policy
01730 265500
hello@robison.co.uk