A client wished to insure two London properties: his main home – a six bedroom house in its own grounds – and a mews house that he rents out.
One of Chubb’s expert risk consultants assessed the two houses, recording construction and finishes for any restoration work, and reviewing the contents.
The main home was insured for £2.5 million and the mews house for £1.1 million. Following a full appraisal of both properties, the sum insured for the main home was agreed as correct but the mews house was reduced to £330,000. It had been insured at its market value, not its rebuild cost.
However, the main property’s contents cover was too low – the client’s clothing alone exceeded the total limit noted on the existing policy, and his wine collection worth £18,000 was not included at all. We recommended to increase the contents sum insured from £125,000 to £400,000.
The appraiser also made recommendations about fire, security and other protection measures, including the relocation of some paintings to prevent sun damage. All recommendations were set out in a summary report sent to the client, helping them reduce risk and save money.
With the key values agreed upfront, a future claim settlement can be faster and fairer.
With an ordinary policy
The client would have to work out the sums insured himself. These sums will be assessed at the time of a claim, and any under-insurance could mean the claim being reduced by the percentage of the under-insurance.