The Dangers of Underinsuring Your Holiday Home

Underestimating the value of your holiday home can have huge financial implications if something goes wrong. We run through the risks of underinsurance and what to consider when looking to value your home.

The danger of under insurance

 

Video transcript

The rebuild or replacement cost you give us for your buildings and contents is possibly the most important information to get right. If you get it wrong, you could find that you don’t receive the pay-out you expect if you need to claim.

It’s important to note that the figure you give us must be the rebuild cost NOT the market value of your property. This means the cost to rebuild your property brick by brick including demolition, architect’s fees, solicitor’s fees and building material costs.

If your property is in the UK, finding out a guide price for the rebuild value is quite straightforward. You could simply visit the ABI rebuild calculator which can be found on the BCIS website.

If your property is abroad however, you will need to gain the help of a local surveyor who will be able to give you an accurate value.

The best advice we can give is – get a professional surveyor to value your building or buildings. It’s best to give us an accurate value rather than find out you’re underinsured when it’s too late.

We can’t stress enough how important it is to get your building valuation right. When you take out a policy with Towergate, we’ll remind you.

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