Are Your Insured Amounts Correct?
- Jul 9
- 2 min read
Updated: Jul 23
What value should you use?
Not market value
Not second-hand value
Replacement value (what it costs to replace with new today)
Quick Checklist for Clients
Buildings
Insured for rebuild cost, not property price including
• Labour
• Materials
• Professional fees
• Demolition & debris removal
• Update after renovations
Should a claim arise: If the property at any time of loss or damage is not insured for the full replacement value, the average clause will be applied. The insurer will only compensate the client for the percentage of insured amount.
Household Contents
Cost to replace everything new (clothes, furniture, electronics)
Don't guess — walk room by room.
Common underinsured items
• Clothing
• Kitchen contents
• Curtains & blinds
Should a claim arise: If the property at any time of loss or damage is not insured for the full replacement value, the average clause will be applied. The insurer will only compensate the client for the percentage of insured amount.
Specified Items
• Jewellery, laptops, cameras, bicycles
• Must be individually listed and correctly valued
• Update valuations every 2–3 years
Vehicles
• Insured at retail value (or agreed value if selected)
• Review value annually as prices change
Why This Matters
• Underinsured: Claim reduced by the average clause
• Overinsured: You pay more, but won't get more at claim time
Best Practice
• Review your policy once a year
• Update after major purchases or lifestyle changes
• Ask your broker for help — it's part of the service
A Balanced View
Some clients choose to insure slightly higher to allow for inflation. This can help, but it's not a substitute for regular reviews.
To continue peace of mind that comes with your insurance cover, make sure that the correct value and description are placed on the insured items. Please also take note of the excess structure on all the sections. This is very important at claim stage.
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