2 December 2016
Underinsurance and how it can affect private clients
Imagine a scenario – Mr Jones bought a watch several years ago which is now worth nearly£20,000. He has a general household insurance policy in place with a £2,500 limit. He has been warned this policy won’t cover the watch, or any other expensive item he has in his collection over this value. But Mr Jones doesn’t want to pay the higher premiums insuring these items would require, so he declines.
Six months later, he loses the watch and his insurance company will only pay out £2,500, leaving Mr Jones significantly out of pocket.
Nearly three quarters of high net worth clients are underinsured, and it’s easy to assume those people are unaware of it. But what of those who actually know they’re underinsured and choose to do nothing about it?
Click here to read our short guide on underinsurance and how it can affect you.