What is Underinsurance?
Underinsurance happens when the coverage amount on your policy isn’t enough to fully protect you if the worst happens. For example, if you make a claim and your belongings are found to be worth more than the coverage amount, you could face significant financial impact due to the rule of average. This means the insurer may reduce your payout proportionally, leaving you to cover the difference.
Why is it Important?
Let’s say you insure your contents for £25,000, but their actual value is £50,000. This means you are 50% underinsured. If you make a claim for £10,000, the insurer might reduce the payout by 50%, leaving you with £5,000. You’d be out of pocket for the remaining £5,000. The rule of average can have a big impact, so it’s important to get your coverage right.
Why Use Our Contents Insurance Calculator?
At Islands Insurance, we don’t want you to face unwanted surprises when you need to make a claim. Our contents insurance calculator helps you determine the total value of your belongings, so you’re adequately covered. This way, you can protect what matters most. While our calculator is a helpful tool to estimate your coverage needs, it should only be used as a guide. Your own judgement is essential when securing a policy.
If you have valuables or antiques and are unsure of their value, it might be wise to get a professional valuation.
How it works
- Simple Input: Enter the estimated value of your belongings.
- Guided Calculation: Our calculator adds up the values to provide a total sum insured.
- Peace of Mind: Use the result as a starting point to ensure your insurance policy covers the true value of your possessions.
- Download or Quote: Download a PDF for your records or get a quote directly.
Why Islands Insurance?
We believe in providing our customers with the tools and resources they need to make informed decisions. Our contents insurance calculator is designed to help you avoid the pitfalls of underinsurance.