Losing weight, getting fit, a device detox or more self care? These are all popular New Year Resolutions but if there is one that you should absolutely follow through on it is to check your home insurance policy is fit for purpose.
A recent review by Central Bank shows that under insurance increased from 6.5% in 2017 up to 16.5% in 2021. Policyholders saw their claim payout reduced by a staggering 19% which is a huge loss for these homeowners who will have to pay for the shortfall from their own pocket to reinstate their property.
Paul Murchan, Director, Gullion Ltd said, “Underinsurance can occur when valuations are grossly out of date or too roughly estimated. However what we are seeing more and more is underinsurance due to the huge surge in rebuild costs due to the continuing increase in the price of energy, inflation on raw materials and construction labour shortages.
“Having the right level of cover is almost as important as the cover itself as it means that if you ever need to make a claim, you won’t find yourself at a loss. Latest studies show the national average increase in a house rebuild costs is 21%. That’s 1/5 more than you may have allowed for on your policy should your home be destroyed by fire and it needs to be completely rebuilt.
“For any policyholders who have modified their property with renovations such as loft conversions or extensions, they should ensure that the sum insured is adjusted to reflect reality. The worst case scenario when failing to provide an accurate sum insured is that within the Insurance Act 2015, if an insurance company believes that the declared rebuilding sum insured represented a deliberate or reckless breach, they would be within their rights to void the policy altogether.”
Help with identifying a more accurate sum insured can be found at:
Northern Ireland – Insurance Rebuild Calculator
Ireland – Insurance Rebuild Calculator
In the unfortunate event where you need to make a claim, contact Gullion Ltd Loss Assessors and Surveyors on 028 3082 8838. Regulated by the Central Bank of Ireland and authorised and regulated by the Financial Conduct Authority we will negotiate the best settlement on your behalf to ensure you achieve your full entitlement, under the terms and conditions of your policy. To reduce stress and streamline your claim, restoration works is an optional extra service which we also provide.
Gullion Ltd – you’re number one choice for insurance claims. For more, Gullion Ltd can also be found on Facebook, Google, YouTube and Twitter.