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Underinsurance Assistance | Home Insurance Claims

We often liaise with clients that go to claim on their insurance and their appointed loss adjuster deems the property ‘underinsured’. We wanted to share how we recently overcame this issue and how an independent Loss Assessor can be beneficial to your home underinsurance claims process:

Your Claim was delighted to assist and advise our client Mr Eastman in Braintree, Essex, after a burst pipe left his home in ruins.

The loss adjuster deemed this residential property 25%under insured. Mr Eastman’s Broker disagreed and so did we. Had Insurers applied average Mr Eastman’s claim settlement would have been reduced by 25% which in this instance would have left Mr Eastman needing to contribute tens of thousands of pounds of his own money to complete repairs.

Your Claim assessed the rebuild costs and then commissioned a Surveyor to independently survey the property, both valuations were consistent with Mr Eastman’s original buildings policy sum insured figure. We stood firm preparing to escalate if necessary, and finally loss adjusters accepted their assertion was incorrect and reinstated the claim value in full.

How to combat claim settlement reduction due to underinsurance

Are you confident that your home insurance coverage is sufficient to protect you in the event of a disaster? Having the right amount of insurance is crucial, as being underinsured can lead to claim settlement reductions when you need it most. Here we will explore why adequate insurance coverage is essential, what steps to take if you find yourself underinsured, and how to negotiate with your insurance company for a fair settlement. Don’t let inadequate coverage leave you vulnerable, and let’s understand how to deal with it claim settlement reduction due to under insurance reduction due to underinsurance.

Image showing a water damaged house surrounded tools and documents. The loss assessors from the insurance company talking to an independant loss assessor discussing the properties underinsurance

Why it is important to have adequate insurance coverage.

Your home is more than just a place to live – it’s an investment and a haven for you and your loved ones. Adequate insurance coverage ensures that your property, belongings, and financial well-being are protected in case of unforeseen events like natural disasters or accidents. Without proper insurance, you risk facing significant financial losses that can be devastating.

Imagine the stress and uncertainty of trying to rebuild or replace your home without adequate coverage. From structural damage to personal possessions, the costs can quickly add up beyond what you might expect. With the right insurance policy in place, you can have peace of mind knowing that you’re prepared for whatever comes your way and underinsurance will not be an issue.

Don’t underestimate the importance of having sufficient insurance coverage tailored to your specific needs. Being proactive now can save you from potential hardships down the road.

What to do if you are already dealing with underinsurance?

Realising you are underinsured can be a frustrating discovery when faced with a claim for damages to your home. The first step is to carefully review your current insurance policy to understand the extent of coverage and identify any gaps that may exist. 

Contacting your insurer to discuss options for increasing your coverage limit or adjusting your policy is crucial. In some cases, they may offer solutions such as endorsements to continue adequate cover.  

Consider seeking quotes from other insurance brokers to compare rates and coverage options that better suit your needs. It’s essential not to wait until it’s too late before taking action to address the underinsurance issue.

Taking active steps now can help prevent potential financial strain in the event of future claims related to property damage. Remember, being adequately insured provides peace of mind and ensures you are prepared for unexpected circumstances that may arise.

Negotiating with the insurance company for a fair settlement

When it comes to negotiating with your insurance company for a fair settlement, preparation is key. Start by gathering all necessary documentation to support your claim – this may include receipts, photos, and any relevant contracts or estimates. 

Be clear and concise when communicating with the insurance adjuster. Present your case logically and provide evidence to back up your claims. Remember that staying calm and professional can go a long way in reaching a satisfactory resolution.

It’s important to understand your policy coverage and rights as a policyholder. If you feel like the initial offer is inadequate, don’t be afraid to push back and advocate for yourself.

Consider seeking assistance from a fully authorised and directly regulated FCA loss assessor. Check their validity on the FCA website, and search the firm’s name for a six-digit authorisation registration number.

If you believe you’re not being treated fairly by the insurance company, directly regulated loss assessors will provide valuable expertise and guidance throughout the negotiation process.

Persistence pays off when it comes to securing a fair settlement from your insurance provider. Keep pushing for what you deserve until you reach a resolution that feels right for you.

Having adequate insurance coverage is crucial to protect our most valuable assets. Home buildings & contents insurance provides a safety net in times of crisis, ensuring that you can rebuild and recover when disaster strikes. 

Remember, to avoid issues with underinsurance, proper insurance coverage is not just about meeting legal requirements – it’s about safeguarding your financial security and peace of mind. By staying informed, proactive, and assertive in managing your insurance policies, you can combat claim settlement reductions effectively and ensure that you are adequately protected against unforeseen events.

Avoid these common pitfalls by pre-vetting before you file.

Your Claim are pleased to pre-validate property damage claims before you file free of charge. Double checking statements of fact, policy particulars, exclusions, endorsements, policy excesses, and calculating sums insured, confirming damage relates directly to an insured peril, in line with policy conditions. 

Client Testimonial:

I experienced a major water escape to my timber-framed house in December 2022. The damage was extensive. Ceilings, walls, and floors were all lost. All furniture and soft furnishings were destroyed. I was recovering from surgery at this time and in no shape to deal with the situation.

I had the great good fortune to be introduced to Your Claim at this time and discovered how the company could help. They did, despite all of the hurdles the insurers and loss adjusters put in the way (and there were a great many) Graham remained positive and upbeat. He countered every objection with a blend of professionalism, common sense and humour. Without his expertise, I dread to think how this entire episode would have ended. Thank you Graham for facilitating the return of my home to me. I cannot recommend Graham and Your Claim Ltd more highly.

Mr Eastman

what our customers say...

We have recommended Your Claim services on a number of occasions. Graham’s knowledge of his subject is second to none and he always works with us to quickly understand the extent of cover available…

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