A significant surge in under insurance highlights the financial pressures and the risk being taken by homeowners, to reduce their outgoings, during the Covid-19 pandemic.
As this under insurance trend gathers momentum, property insurance claim expert Paul Murchan, Director, Gullion Ltd said, “Whilst we’ve encountered clients who have under insured their property from time-to-time, we’ve witnessed a marked increase in the number of under insured homes in the last few months, by as much as an eye watering 60%!
Given the financial implications of Covid-19 on household budgets, it appears that many homeowners are trying to reduce outgoings with house insurance being top of the list.
Paul continued, “Under insurance is a HUGE risk for any property owner, should you need to make a claim. Those who have under insured their property by such a high percentage and are making a claim, face a significantly reduced pay out from their insurance company. This leaves a hefty bill for the homeowner as they try to reinstate their property.
“With PwC UK predicting that home insurance could drop by 4-8% for those who shop around, combined with restrictions lifting soon, we hope to see this under insurance trend, slow down.”
For most people, their home is their most expensive tangible asset so it should be insured to its full value, to protect it and your pocket. This figure is not the current market value but rather the amount needed to rebuild the property. You can check your sum insured by using these FREE calculators:
Ireland – Insurance Rebuild Calculator
Northern 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 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.