How can valuations help to avoid underinsurance?

Without being aware of it, a large number of UK businesses are gambling with their ability to bounce back after a major loss, by chronically underinsuring themselves.

Underinsurance leads to policies not functioning as intended, ultimately resulting in customers receiving less compensation than they need to adequately recover from a loss. Despite the dangers of underinsurance, research conducted by the Building Cost Information Service suggests that the level of underinsurance in UK commercial property could be as high as 80%. Incorrect or out-of-date valuations are a major cause of underinsurance and in some cases could also see customers being overinsured and overpaying.

This article explores how valuations can add value to businesses and how Zurich can help brokers and customers by recommending trusted suppliers.