Insurance can be complicated. After all, it’s a contract and contracts are always full of conditions and clauses.
When it comes to insuring your building there’s one clause you really need to know about, because THIS CLAUSE can cause big problems if you ever need to make a claim.
It’s called THE AVERAGE CLAUSE and put simply, it means if you insure your building for an amount that’s too low, your insurer can reduce how much they’ll pay out. It’s your insurer’s way of making sure you only get what you pay for.
For example, let’s say that a policyholder has a building insurance policy with a sum insured (the maximum amount the insurer will pay out) of £100,000, but the actual rebuilding cost of the property is £200,000. If a loss occurs and the subject to average clause is in effect, the insurer will only pay out £100,000, regardless of the actual rebuilding cost. It is the policyholder’s responsibility to accurately assess the rebuilding cost of their property and ensure that the sum insured is sufficient to cover it.
Don’t fall victim to the dreaded Average Clause
There is only one way to make sure you don’t suffer the consequences of the Average Clause and that’s to make sure you insure your buildings for the right amount. And the only reliable way to do this is use a ‘Regulated by RICS’ property professional who knows all about rebuilding costs.
Talk to us today
The good news is we have access to an online desktop valuation facility, carried out by Rebuild Cost Assessment. They will prepare for you a personalised valuation pack. The cost for this service is £126.00 including VAT.
All you need to do is to call our office on 01305 268883, we will take your details and arrange the valuation.