Often property owners think their properties are fully covered in the event of a hurricane but forget about the “Average Clause” and how it can affect the funds received in the event of a claim.
Average Clause states, the policy owner should bear a portion of the loss if the asset is insured for less than the actual replacement value. So, in simpler terms, if your property is underinsured, and in the event of a loss the amount paid will only be a percentage of the claim.
Don’t worry, you can prevent this by following these precautionary measures;
- Check with your insurance agent to ensure yearly adjustments to your premium reflects the cost of inflation and the overall value of your property
- Reevaluate your property to be sure that you are insuring for the correct value
- Take an inventory of the contents in your home including new valuables you may have
If after you have taken the precautionary measure you realize that your sums insured are not adequate, then contact us at 4652511 (St. Kitts) or 4695430 (Nevis) today! Ensure your property is adequately insured…remember once a loss happens, it will be too late!