Key statistics recieved paint an interesting picture regarding the issue of underinsurance.
- Aviva estimates 42%
of SMEs who insure buildings with them are underinsured.
- 91% of SMEs are
confident they have the right level of cover in place
- 19% of businesses
haven’t reviewed their indemnity period in the last 2 years
- 10% of SMEs –
that’s more than half a million UK businesses – believe they wouldn’t survive
if they had to pay up to £10,000 towards a claim that wasn’t fully covered by
insurance.
The likely outcome of a property that is underinsured is for insurer to apply the Average Condition, which means the insurer will pay the claim in proportion to how it is insured. When there is a partial loss this can result in a difficult position for the Insured business.
Aviva experts explain why underinsurance is a concern to your business. Please see the link below.
Please also bear in mind a RICS approved rebuilding cost survey arranged via Howe Maxted with RCA starts from £133.50. This will remove uncertainty and provide peace of mind.
