Future Proof

23.06.21

Ensuring you have adequate insurance cover for your home and belongings can be difficult to ascertain. Julia Millen spoke to Mark Daines, Private Client Director at insurance broker Aston Lark, for some advice

With more than two thirds of households being underinsured¹ and an estimated £226 billion² of contents in homes either underinsured or not insured at all, underinsurance is a significant problem. At Aston Lark, we work with insurers who appreciate the challenges that underinsurance represents and are willing to work with all involved to ensure peace of mind.

In short, we’ll help you to ensure that your sums insured are correct and that your insurance policy is providing you with the cover you need. And, if you claim, we’ll be there to help.

Keep your insurance up to date

The worst thing you can do is assume the cover you have in place is adequate, as the realisation of being underinsured only becomes clear at the point of a claim, just when you need your insurance policy the most.

Red flags to look out for:

Buildings

The sum insured is based on a mortgage valuation
A mortgage valuation is not an in-depth survey of the building and therefore the surveyor will often express the rebuild sum as the ‘minimum requirement’.
The sum insured is based on a proportion of the purchase price
There is no direct correlation between the retail value of a home and its rebuild cost.
The building is listed
A listing increases the cost and complexity of repair or rebuild.
The sum insured does not include professional fees or demolition costs

These costs can be up to 20% of the overall rebuilding cost.

The sum insured has not been increased following building works

New kitchens, bathrooms and extensions can be expensive investments and need to be included.

Contents, Fine Art and Jewellery

Calculate your contents
Don’t underestimate. Think of the new purchases you’ve made and always calculate replacement costs as new.
Check your jewellery and watches cover
The price of diamonds and precious metals are particularly volatile. Obtain a jewellery valuation from a registered valuer at least every three years.
Check your fine art cover
As with jewellery and watches, their value can appreciate so it’s important to ensure that you have them valued every three years.
Take photographs
Photograph each room, as well as high-value items, save the photos and back them up.