If you are underinsured this clause could reduce your claim significantly if your property is damaged or destroyed for example. Being underinsured means that there is a gap between what your property is worth and what your insurance covers.

For Example – A property owner insured her building for the market value of £400,000, thinking that had her covered. But after a fire breaks out on her property, she’s informed by specialists that to rebuild the premises she is looking at an amount of £800,000. As she only has insurance for 50% of the value of her building, she would only be entitled to a 50% payout from her insurance company meaning so would only receive a payment of £200,000.

Underinsurance often happens by accident as people either guess at the values, underestimate the current costs for materials or attempt to reduce their insurance premium, but the last thing we want as a broker is you guessing. There are tools out there that can help you, you can seek an independent valuation for rebuild purposes or there are various websites that maybe able to assist to ensure you are giving providing the right information to your insurance company and therefore paying the correct premium. Ensuring that the amount you’ve insured your property for matches its true value, you’ll know you’re safe if the worst were to happen.

Payout = Claim x (sum insured ÷ current value)

How it works

(The Loss ÷ Correct Sums Insured)  X  Current Sums Insured = Settlement

As another example, if you had a £20,000 loss and the current sum insured was £35,000 and the actual sum insured should have been £55,000 as new, the insurers would only pay out £12,727, shown below:

How it works

(£20,000 (Loss) ÷ £55,000 (Correct Sums Insured)) X £35,000 (Current Sums Insured) 

= £12,727 Settlement

Always remember ‘Value everything as new’ or better still dig out your policy booklet and study your current sums insured.  You can always increase your sums insured with your insurance adviser midterm without any hassle.

We are here to assist you, for further information please feel free to call us for a chat on 01924 499182!

The post Understanding the Average Clause appeared first on Thornhill Insurance.

Having worked previously for one of the top 5 direct insurance companies in the UK, I never quite understood why people used a broker. I have now been working at Thornhill Insurance Brokers for 5 months and already I understand the important role an Insurance Broker has in both the insurance industry and for providing service and value to their clients.

Service

One of the standout differences between going directly to an insurer or using comparison sites, and using an insurance broker is the service that is provided.

Insurance Brokers offer what direct insurers rarely can, which is a personal service. When dealing with Thornhill Insurance Brokers, you can speak to the same person, so you don’t have the task of explaining everything every time you get through to a new call handler in a large and faceless call centre. The ease of speaking to one person that understands you, your business and your needs is invaluable.

One of the most important things to remember is at Thornhill Insurance Brokers we work for you! We are here to provide you with the most suitable and competitive insurance we can find whilst offering first class service.

Products

When going directly to an insurer, they can only offer you one product, theirs. Insurance Brokers have access to a wider marketplace, this means that even with the most complex risks, we can locate the right insurer for you that offers the right policy and premium. With the help from our dedicated and experienced insurance executives we can tailor policies to your needs so you can be sure you have the cover you require.

Claim Support

Making a claim can be daunting, when dealing with insurers and loss adjusters, brokers will work with the insurer on your behalf and do their best to make sure that the claim process is smooth and hassle free. Customer service is at the forefront of our business and with over 40 years of experience as an Insurance Broker we have the expertise to work with insurers on your behalf.

Price

One common misconception surrounding insurance brokers is that you will be paying a premium for using their services and therefore it will be more expensive than going directly to an insurer.

This isn’t the case; insurers are often able to offer brokers different pricing to direct clients which can mean that the prices can be more competitive than going directly! Insurance brokers have access to a wide range of products and insurers and having the right cover can often be more cost effective than paying for something you do not actually need.

On the whole, using an insurance broker can have great benefits and we are sure that once you make the change to a broker you won’t look back! I would welcome the opportunity to have a chat through some of the services that we offer at Thornhill Insurance Brokers!

If you are interested in a chat, please give the team a call on 01924 499182

The post Why Use An Insurance Broker? appeared first on Thornhill Insurance.