Our guide to underinsurance
The purpose of insurance is to reduce financial uncertainty by providing peace of mind that, in the event of any financial loss, you are covered and won’t be left out of pocket. So long as your property is insured for its rebuild value, the cost of repairing or rebuilding your home is taken care of if something unexpected happens. But what happens if your property is not insured to its full, current rebuild value?
In 2022, Total Landlord ran a campaign to raise awareness amongst our customers on the risks of underinsurance, as we had seen a significant increase in landlords whose rental properties were underinsured, putting them at risk of serious financial loss. In this updated guide, we’ll explain why, despite the drop in properties that are underinsured, levels of underinsurance are still ‘unacceptably high’, according to recent data from valuations provider, Rebuild Cost Assessment. We’ll highlight why it is a particular problem at the moment due to the changing nature of risks, and what you can do to avoid it. But first, what is ‘underinsurance’?