Again, due to the issues of demand outweighing supply, the cost of reinstating contents has risen which in turn inflates the cost of settling claims following damage to contents. Policyholders should ensure accurate valuations of specified items to avoid being disappointed when the maximum settlement is below what you would expect because of underinsuring the items at the outset. Insurers will apply an indexation on contents to ensure the sum insured is adjusted to meet the rise in claims inflation.
When insuring computer equipment, plants or machinery, again the same should apply, make sure the declared value is an accurate cost. Most will be insured on the amount it would cost to replace the items of the same value. You must also consider, particularly with specialist machinery that if you bought it second-hand, and it can no longer be found on the second-hand market, the replacement cost would include that of a brand new machine.
If you donβt have an independent broker like Access looking after your insurance, then now may be a good time to review your insurance with one of their experts. Access Insurance can help you make your insurance cost-effective, so you only pay for the cover you need.
To find out more contact us at buy@cscbg.org.uk or call us on 01908 663958