True Value

Recent research by Aon has highlighted the impact valuations can have on the performance of insurance policies when it comes to making a claim. Anthony Davenport investigates

Choosing the right insurance policy is trickier than many realise. ­ The risk of under and over-insurance is great, especially for those who choose to value their possessions on their own.

How self-valuation can lead to underinsurance

A survey of 500 individuals with a personal income or investible assets of over £100,000, found that nearly two thirds (58%) had not sought the support of an independent, professional valuer to appraise their belongings prior to buying insurance.

Poor or outdated valuations can lead to under or over insurance, and exposure when it comes to making a claim. ­ This is why valuers are instrumental in managing the insurance needs of those with a little more to protect.

How valuers help get the right cover in place

Barrett Corp & Harrington’s found that 81% of properties in the UK are insured for only 61% of their value. Lorna Harrington, Director at Barrett Corps & Harrington has spent more than 20 years assessing and valuing everything from fixtures and fittings to fireplaces and stables. Many clients assume that insurers determine the pricing of the policy based on a home’s value. In reality, insurers underwrite the cost of rebuilding the home from scratch. ­ is number is usually very different from the price paid. ­ This means that buildings are often over-insured, says Harrington. “If someone has put down their house purchase price in the policy, which may be much, much higher than the rebuild cost, they might be buying an overpriced policy.”

It takes a professional valuer to ensure that you are neither over nor underinsured. Valuers bring years of expertise to bear for their clients and, crucially, they assess the current value of possessions on the open market. ­