Increasing numbers of high-tech homes are under-insured, putting householders out of pocket in the event of loss or damage.
Rossborough is warning homeowners that not updating valuations for building and contents insurance after renovations, improvements or the purchase of expensive equipment, will lead to being under-insured.
“Most insurance companies will index link the sums insured at every renewal to keep up with the cost of living and that goes some way to ensure that people aren’t under-insured but that won’t be enough if the value of your property or your contents has increased dramatically since you first took out the policy. That is a considerable risk to take,” said Rossborough Guernsey director Tony De Sousa. “If you are under-insured on your buildings’ insurance, in the event of a claim the insurers will apply average. This means that if for example your buildings are only insured for half of the actual amount, the insurers will only pay out 50% of the cost of the claim.”
A recent survey by Aviva of five million properties for sale in the UK revealed that 257,000 were described as having a ‘high spec interior’ and of those 63% had under-floor heating and over a quarter had quality finishes such as granite work surfaces and marble flooring.