Sums and limits.
WHAT TO CHECK
Whether the amount insured would actually replace what was lost.
THE COMMON PROBLEM
Cover set years ago, on values that have changed substantially.
WHY THAT MATTERS HERE PARTICULARLY
Replacement costs move with exchange rates and inflation.
Equipment insured for what it cost may not replace it.
WHAT TO REVIEW
The sum insured against current replacement cost Whether new equipment or stock is covered Whether limits per claim are sufficient
WHAT TO DO
Recalculate annually.
WHAT UNDERINSURANCE CAN MEAN
Some policies reduce a claim proportionately if the sum insured was too low.
So even a partial loss may not be paid in full.
Establish whether yours works that way.
WHAT ELSE TO CHECK
Whether cover extends to items away from the premises Whether it covers items in transit Whether it covers items in a vehicle
WHAT TO TELL YOUR INSURER
Any substantial change: new equipment, new premises, new activity.
WHAT TO DOCUMENT
An inventory of what is insured, with values.
