Sums insured is determined as the maximum amount of money, that an insurer will pay out in the event of a claim. This means that the total value of property and / or assets should be correctly valuated in the first instance when buying an insurance product to ensure that your property and your business is properly covered.
Sometimes circumstances can change through a time period of an annual policy, or a customer might under value their property and assets, to keep their premium low. In respect of either scenario, if the insurer has not been notified of any changes to the business or the true value of a property, this could have impacting consequences on a claim. Should an unforeseen event occur, the owner may not receive the full amount that they would have been entitled too, to cover their losses had they given accurate information prior to the incident.
How can valuations be made accurately?
- It is essential that you valuate your property based on its rebuild cost, which includes the most up to date cost of materials, disposal of any debris, removal costs, plus surveyors and architect fees.
- The overall value should also reflect the level of risk and should be reviewed regularly to ensure that it is measured proportionately.
- It is important to understand that an insurer may only pay out for a part of a claim or can reject your claim based on under-valuation.
Has your business gone through significant changes over recent months or embarked on a growth phase? Here at JRW Risk Solutions we ask the right questions about your business, property and assets, to ascertain the full scope when making a valuation and offering an insurance product. To find out more about how we can support your business, please get in touch.