High value home insurance is not just for the super rich. With the rise in house prices over the last thirty years many thousands of people have been thrust into the high value home insurance bracket. This is particularly the case in London and the south east where house price have exponentially risen to astronomical levels. Average house prices in London are a whopping £552,201 with Central London an incredible £1,330,910. East London has the least expensive but still come in at a little over four hundred thousand pounds on average. Even areas such as the South East have average house prices at £355,437 and the East of England £290,000. (http://www.rightmove.co.uk/house-prices/London.html).
All of the above prices are just averages so you can image the extremes. It is now not unusual for homes to exchange hands for many millions of pounds. As I said above you do not need to be in the high end bracket to benefit from the bespoke service a high value home insurance policy can offer. Your location may well bring you into the high value home insurance arena.
In many cases using a specialist such as Mcleod Insurance does not increase your premium but rather it tailors your policy around your needs. By having this specialist approach we are able to increase one side of the policy and reduce the cover in areas that you do not require. Hence making premium savings wherever possible. Only years of experience and a comprehensive knowledge of the market and indeed of your client can ensure these type of bespoke policies. Standard home insurance policies a neither designed nor claim to tailor their policies in these ways.
Does your home have a rebuild cost of more than £250,000?
If your home has a rebuild cost of more than £250,000 then you would be well advised to seek out a specialist advisor so that you can both save money and ensure you are correctly covered. We often say it here at Mcleod Insurance that specialist high value home insurance need not be a more expensive proposition than your current standard policy. It is all about the detail and all about making sure that you are properly insured. Standard home insurance policies are exactly that, standard. They work for the masses and provide good overall basic cover for most homes. However the standard home insurance policy is not flexible enough to cover high value homes and you can be left exposed.
Why is my Standard home insurance policy not suitable?
The reason that a standard home insurance policy may not give you the correct level of cover can be found in the small print. As is so often the case the devil is in the detail! Don’t get me wrong the detail is not intentionally put in to trip you up. It is simply put in to attempt to have a one size fits all type of clause. The bottom line is that this one size fits all approach works just fine for a standard two bed terrace with a rebuild cost of £50,000 and if that fits your requirements then great! However if you live in some of the areas of the UK that have seen a dramatic increase in values you may well be surprised at the rebuild cost of your homes. Actually I should not focus entirely on the rebuild costs as its the contents that are also very much at risk. Standard insurance policies have broad approach which may say, ‘contents to the value of…’ At first glance you think .’.£20,000 or £50,000′ sounds about correct for me and therefore you consider the policy to be adequate.
Have you had your possessions valued recently?
However there is more to it than that. If you don’t value your possessions correctly or don’t itemise them individually you can be at risk of being under insured. Being under insured is another issue and not a subject I will dwell on here. However I will be covering this topic in one of my future blogs so keep an eye out for it. The point is that being underinsured is a problem and one which standard insurance policy is unlikely to solve. If you have itemised your contents then the next issue may be valuation. Many antiques or collectables vary in price from year to year and it is prudent to have them valued from time to time to ensure you are adequately covered. Again a poor valuation or rather an out of date valuation could leave you underinsured.
As a specialist in high value home insurance here at Mcleod Insurance we ensure that the correct questions are asked and answered and if valuations are required we can help and advise the appropriate action. We can if necessary come out to your home and assess your circumstances but to be honest it is much more important that we ask the correct questions in the first place and our experience in these matters ensures a smooth trouble free quote
If you would like to discuss your situation or would like further information on any subject raised above give us a call today.