At Unity Insurance, we speak to clients every day who believe they’re properties are protected with their current insurance. But what happens if a claim is made and the cover in place doesn’t reflect the true rebuild or replacement cost?
This is where underinsurance becomes a serious issue. It's not just a gap in paperwork. It’s a financial risk that can determine if a claim is paid in full, or only in part.
Underinsurance occurs when the amount you’re insured for is less than what it would actually cost to rebuild or replace the insured asset. This is especially common with buildings cover, where rebuild costs can rise significantly over time due to inflation, materials, labour shortages, or changes in regulations.
For example, if your building should be insured for £500,000, but your policy only covers £250,000, you’re 50% underinsured.
Insurance shouldn’t be about ticking a box. Our responsibility is to make sure that our clients have the right cover. That’s why we aim to proactively raise the topic of underinsurance during renewals and raise awareness of this topic. Our experienced Account Handlers can provide you with tools to review building valuations and put you in touch with reputable rebuild cost assessment partners to ensure accurate figures.
So, let's chat and take another weight from your mind 🤩
If you haven’t reviewed your insurance cover ecently, now is the time to act. A short conversation today could prevent a major funding gap tomorrow and ensure your organisation is fully protected when it matters most. Contact the CSC Buying Group and we'll arrange to get you connected with Unity Insurance services.