A recent insurance claim highlighted the fact that relying on an online calculator to establish the rebuild cost of your property could mean that you are underinsured in the event of a claim. A family suffered a total fire loss but were underinsured by £500,000. Insurers estimated that it would only have cost in the region of another £100 to insure the property for the correct rebuild sum insured.
According to an article in the Guardian newspaper, the property’s rebuild cost had been set using a free online calculator. However, the figure fell way short of what the insurer believed it would cost to rebuild the home from scratch. Typically, there was also some confusion around the inclusion of VAT in the rebuild cost.
The Guardian said the case would “alarm people across the country” who relied on automatically generated rebuild cost quotes, especially through comparison websites. The article led to over 100 reader’s comments, one of which said: “I hate reading these sort of things, we increasingly need to become experts when taking out insurance.”
The report claimed the homeowners paid a premium of £1,360 a year for their cover, adding that if the higher rebuild value had been used it would have cost them little more than an extra £100. “They insist there was no attempt on their part to deceive or underinsure deliberately just to save a few quid,” said the Guardian.
We work in Partnership with RebuildCostASSESSMENT.com and can offer Rebuild cost assessments for as little as £ 100. The report will give you an accurate rebuild sum insured and ensure that you are fully covered in the event of a claim.