In the realm of home insurance, change is on the horizon. The reliance by some insurers and brokers on blanket or bedroom-based insurance covers is being reevaluated, and a recent warning from surveyors Rebuild Cost Assessment, has brought these concerns to the fore. At Samson Insurance Services, our commitment to ensuring our clients are well-informed and adequately protected has never been more critical.
In a thought-provoking article published November 16th, Rebuild Cost Assessment sheds light on an issue we’ve been cautioning our clients about – the potential inadequacy of blanket covers. The revelation that insurers might deny liability, claiming the policy was unsuitable from the start, is a game-changer. For many homeowners, especially those with blanket policies from retail banks or online-only insurers, it’s time for a wake-up call to reevaluate the true value of their properties.
The heart of the matter lies in the fact that rebuilding costs have surged in recent years, rendering traditional blanket or bedroom-based covers potentially obsolete. Steve Moores, Dip CII, Client Director at Howden Private Clients, shares real-world examples where insurers scrutinise £1 million blanket policies, potentially leading to canceled coverage and no payout. The justification often revolves around rebuild costs exceeding the coverage by a significant margin.
The once-reliable £1 million coverage, representing a ‘more than enough’ amount in the past, is no longer sufficient. This underscores the urgency for homeowners to adapt to the changing insurance landscape. As Steve rightly points out, having a broker by your side is crucial in navigating these complexities. Clients without a broker may find themselves grappling with claims disputes alone, a situation we believe could be avoided with proper guidance.
Like Samson Insurance Services, Howden is taking proactive steps, reviewing blanket policy coverage and engaging individually with homeowners of larger properties. A proposed solution to address potential underinsurance is desktop rebuild cost assessments, particularly for properties with four bedrooms or more.
Steve advocates for a broader industry reassessment of the level of blanket cover provided. Meanwhile, he emphasizes the importance of an independent RICS regulated report to support the level of coverage in place, underscoring its significant value for those seeking insurance arrangements.
In conclusion, the era of relying solely on blanket or bedroom-based household policies is fading. The insurance landscape demands a proactive approach, with homeowners, brokers, and insurers collaborating to ensure that coverage aligns with the evolving realities of rebuilding costs. Samson Insurance Services stands ready to guide homeowners through this transition, emphasizing the need for tailored solutions in an era where one-size-fits-all policies may no longer suffice. Call us today to discuss how we can secure your peace of mind in this shifting insurance paradigm. Your home deserves coverage that adapts and protects in the face of change.
