Our Customers Love Us!

Home Insurance

Get a Quote

Get Quote

HomeProperty InsuranceHome InsurancePerils Under Insurance

Perils Under Insurance

The Perils of Under Insurance

In these cash conscious times, it’s fairly common to look around to see where money can be saved and often home insurance, is one of those ” Luxury” items that people feel they can either do without or they can cut corners on. The problem is that Home Insurance, is not a luxury item, its a necessity for home owners and those living in rented accommodation a like. The government, in an acknowledgment of the fundamental value of insurance have afforded it a special tax rate (6%) rather than the usual 20% VAT that applies to most goods and services.

Once you’ve accepted the fact that it’s foolish to try and live without home insurance, it’s easy for the thoughts to turn to paying as little as possible for the product. Of course, phoning around can help you save money and there are plenty of tools and websites that help you to compare home insurance quotes online. These are all legitimate ways of trying to reduce your insurance costs, but there is another way, often considered by people , that could have disastrous results. Here is a typical thought ” Why should I insure my building and contents for the full value when I am only ever likely to want to claim for a small proportion of their total value, I can’t imagine my house burning down/flooding etc. Or, I only want to insure £10,000 contents because, that’s all I would want to claim for. Both seem like reasonable arguments but these “first loss” arrangements are not usually entertained by insurers who require you to insure for the full reinstatement value of your property, to take in to account the worse case scenario, ie , a total loss.

Now total losses are few and far between, but they do occur and were you unlucky enough to have one, you would probably find yourself financially crippled by the outcome if you did not have adequate home insurance protection in force. Insurers are easily capable of calculating their estimated maximum loss on most risks from statistics, but they require you to insure for the full value so as they are able to collect enough premium and secondly to ensure that you are insured correctly. Particularly with buildings insurances, any lender will require you to keep in force a policy throughout the duration of the loan for the full reinstatement value of the property, they will not allow you to insure for less and you will be in breach of mortgage conditions if you do so. The fact of the matter is, most policyholders cannot imagine serious losses occurring at their home, but the true nature of risk, is that it is mainly sudden and unforeseen, thus under insure at your peril.

In the event of a claim occurring under a policy, particularly if it is serious enough, a loss adjuster will be appointed by the insurance company and they will visit your home to check on the damages, whilst you may not realise it, at the same time, they will be making sue you have the correct sums insured. If you have not insured your home for the correct amount your insurance company are likely to reduce the amount of your partial loss claim accordingly. The amount of claim reduction ( after excess) will be in direct proportion to the amount of the under insurance, suddenly that amount saved on the home insurance premium does not look so worthwhile. Insurers call this reduction in a claim settlement ” Average”.

Not all cases of under insurance are deliberate, I was slightly under insured myself several years ago, as we had just moved in to a new home and had simply failed to keep up with the amount of new contents that was being added. Moving to a new home or the arrival of children are prime times when the value of contents can soar at a property. Each year prior to renewal, you should undertake the exercise of making sure that your sums insured are adequate. A reinstatement value for home buildings, may prove a little more tricky to obtain, there are online guides that will help you calculate your rebuilding costs, but these guides tend to only work for buildings of standard construction that are not split in to flats or listed or thatched. For everything else, they will give a reasonably accurate sum insured that can be relied on. Most mortgage lenders will mention a sum insured in a home buyers survey and providing a policy has been index linked and the property has not been modified or extended in anyway, the sum insured should remain up to date. Always check your home buildings and contents sums insured, failure to do so , could leave you with a nasty surprise in the event of a claim.

Latest News & Advice

Woodworm Dry Rot

Woodworm Dry Rot

Woodworm, Dry Rot and Wet Rot. One of the most costly maintenance problems for homeowners is woodworm, dry rot and wet rot. If left untreated it can huge amounts of damage to the interior of your home. There are treatments and remedies to prevent it’s spread and to eliminate the problem it becomes critical. Woodworm is most commonly caused by the furniture beetle which leave larvae boreholes inside the major woodwork elements of a property. These area include the roof timbers, joists, staircase and floorboards. Woodworm can also infest ordinary household furniture causing a home insurance claim problem....

Types Door Window Locks

Types Door Window Locks

Types of Door and Window Locks – when purchasing a home insurance policy, you may find that your insurance company want you to have certain security measures in force at your property. These should be studied most carefully as without the correct protection being in force, you may find your cover compromised in the event of a claim. For most people, this involves having good quality door and window locks. Good physical security at your property, will be of a far greater benefit in deterring Theft than having an alarm fitted, but not being a lock expert, have do you discover if you have the correct locks fitted at your home?...

Subsidence Structural Problems

Subsidence Structural Problems

Preventing or Dealing with Subsidence and Structural Problems.Whilst subsidence is usually covered by a building insurance policy, it is definitely something that you do not want to happen at your property if at all possible. Claims for subsidence can be on the large side ( hence the reason for the standard policy excess being £1000) and even if the building is repaired by the insurance company, you may find that’s in the future, insurance is harder to source ( and possibly more expensive) and the market value of the property and it’s marketability may also diminish...

Why choose our specialist insurance cover?

Artboard 2 copy 18

Home Insurance from Assetsure icon-thin-chevron-down

Our Home Insurance can provide cover for your Buildings, Contents and Personal Effects. Monthly payments available

Artboard 2 copy 20

Legal Assistance as Standard icon-thin-chevron-down

All our policies include Legal assistance as standard up to £50,000 This offer Legal protection for problems relating to employment, contracts, property and personal injury etc.

Artboard 2 copy 21

Home Emergency as Standard icon-thin-chevron-down

All our policies cover Home Emergency as standard up to £500. this offers protection against unexpected events such as the failure of your main heating system, blockage of drains or failure of your domestic gas or electricity supply

Artboard 2 copy 22

£1,000,000 Cover for Buildings icon-thin-chevron-down

We automatically provide you with £1,000,000 cover for rebuilding cost of your property, ideal if you are unsure of your re-building cost.

Artboard 2 copy 17

Excellent service offered icon-thin-chevron-down

We like to offer all our customers a first class service, which is backed up by our Trust pilot ratings. We are open 6 days a week to assist you with your enquiries.


Instant cover and policies icon-thin-chevron-down

Most of our policies you can now buy online and receive instant documentation. Of course, you are more than welcome to call us and we can provide your cover over the phone