Guide to Sum Insured
Building Insurance
Before proceeding with your mortgage application, your mortgage provider
will ensure you have sufficent building or property cover. Your total
buildings sum insured covers the rebuilding cost of the property
not the market value.
It can be a difficult process calculating this value. The most accurate
method is to commission a surveyor to draw up a valuation report, or if you
have an existing report, to use that. If you have significantly
under-insured
your property, your claim may be reduced or in some cases,
rejected altogether so it is important not to guess!
Contents Insurance
All our policies operate on a
new-for-old
principle. The consequences of this is that you have to insure your home
contents for their full retail replacement value, or your claim may not be
honoured. Make sure you insure all your items for their full value!
Remember, if you under-insure your items then your claim may not be
honoured, so do not be tempted to do this!
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