When it comes to insurance, having the wrong cover can be as much of a risk as having no cover at all.
Yet it’s been reported by Insurance Business Magazine that a growing number of Brits are taking out policies without knowing – or caring – whether they would even be successful in the event of making a claim.
As it turns out, over half of UK policyholders are knowingly underinsured, with “violations ranging from switching jobs – and failing to notify the provider – to not locking doors when leaving the house.”
So, where has this cavalier attitude come from, and what can brokers do to combat it?
Brits and their personal policies
The UK’s total household value has surpassed the £1 trillion mark, with an average value of £35,000 per house. And yet, more than one in four do not have contents insurance – leaving £266 billion at risk.
One cause for this is that the insurance industry has been devalued in the eyes of consumers.
Comparison sites provide your customers with the ability to obtain and compare quotes in a matter of minutes, but when they’re skewing their answers to receive a more favourable figure, and those online self-service channels aren’t pushing for the full picture, is it any surprise that so many are now so heavily underinsured?
In fact, 50% will make “rough calculations” when taking out a policy, with one in ten opting for a blind guess as to the value of their possessions.
Aware that their behaviour voids their cover
Leave their windows open
Don’t lock up when they’re out
Won’t use their burglar alarm