Under-insurance affects many people but is particularly pertinent to the more affluent. According to figures from the Association of British Insurers, of possessions owned by British households, assets to the value of £266bn could be uninsured.
At its simplest, under-insurance means that policyholders who believe themselves to be fully protected are, in fact, only partially protected against the risks to which they are exposed, even though they have bought insurance protection.
This leads to very difficult conversations and poor client experiences when a claim is made. As a result, Chubb goes to great lengths to identify and remedy instances of under-insurance.
One of the most effective ways to tackle under-insurance is a thorough physical appraisal of the property and contents, when possible, in the company of the policyholder and their broker. Depending on the value and size of property this will be an external assessment, but for many of our clients this will be an internal assessment.
Adopting this approach means your property and its contents are correctly valued. When it comes to taking out insurance, this means they are covered for the right amount. This means that, should the worst happen, you will not receive a nasty shock at a trying time.
Chubb has their own in-house team of experts, who go and meet clients to work out the estimated rebuilding value of their property. They spend time having an informal, sit-down conversation and will talk about the history of the house, assess key features whether modern or historical, discuss the maintenance and key risks factors, providing bespoke recommendations where appropriate. This is the key Chubb difference for our clients. We do this as an integral part of our underwriting and risk assessment process for our clients, giving them the opportunity to ask any questions to ensure it is an collaborative effort.
They are trained to assess the unique features of our clients’ homes, enabling us to provide accurate rebuilding costs as well as contents sums insured.
The Chubb home appraisal team is experienced in appraising across Europe. For example, many of our English clients own relatively new build villas in Portugal and Spain. In places like the Riviera, clients can own large vineyards or historic Chateaux - here they face very different insurance concerns.
Ultimately, our clients have many complicated considerations when it comes to insurance. Quality insurance that truly meets needs is something we often don’t realise we need until it’s too late.
Whether you’re trying to insure a large art collection or work out the cost of rebuilding your Alpine chalet from scratch, having your home personally appraised by an expert can make sure you aren’t part of the vast number who are underinsured.