What is Index linking?

Index linking is the process that insurer use to help policyholders keep up with inflation. By increasing your sum insured each year you insurance will remain correct even after inflation has been taken into account.

How is index linking calculated

The index linking for the buildings is based figures provided by the Royal Institute of Chartered Surveyors and the index linking for contents is based on the Retail Price Index. Both of these figures are a percentage and the insurers use this to increase your sum insured.

Whilst index linking can help to protect you for the risk of under insurance it is always wise to review you sums insured every few years to make sure they remain adequate.

For further information speak to your usual Centor contact or Tony Efreme (Property Manager)