We have been crunching the numbers, which make interesting reading. An analysis of our cases illustrates that underinsurance is still prevalent, with 80% of our new clients being under-insured based on a comparison of their declared values with our assessments.
One client under-insured by a staggering £1.65 billion! 
Why accurate assessments are important
The accuracy of declared values is essential to protect the assets of an organisation and the interests of directors, shareholders and funders. Under-insurance can be a major worry, with the application of ‘average’ often leading to a reduced settlement in the event of a claim, whilst over-insurance may result in excessive premiums being paid for no economic benefit.
Policy wording, risk understanding and loss scenarios are important, but it’s not enough. Few organisations realise that it is their responsibility to determine cover levels.
How can Charterfields help?
Our market leading Valuation Health Check (VHC) service is free and covers UK material risks to provide brokers and their clients with an initial investigation to determine whether existing declared values are reasonable.
A VHC is a useful mechanism by which an insured party can begin to better understand the issues that influence cover levels. Where needed for a detailed study is identified then our Insurance Cost Assessment Service covers rebuilding or replacement costs of assets, consideration of debris removal and professional fees, and advice on the treatment of value-added tax.
For more information please call us on 0330 202 0116 and ask for Neil Warburton or Alison Lewington.