Important Information that you don’t want to miss.
Dear customers, please read the following carefully.
Regarding the insured value of your residence or business buildings and contents, it is very important that they are insured to the replacement value, which means, how much they are worth to rebuild today and for contents to buy again today, to avoid under-insurance problems in case of a claim. We have recently seen many claims which are not paid 100% due to the buildings and contents being under insured, which means they are insured below the value needed to rebuild today.
Accordingly, the insurance company pays proportionally and therefore less than what it costs to fix them today. The insured sums of houses and business buildings and contents in general must be revised by the insured every few years so that they are consistent with the current construction costs of the buildings, so that they do not “fall” into underinsurance, and not paid 100% of the claim
When you originally build or buy and insured your home or business buildings it had a certain value. Most likely, right now your home is worth more for different reasons:
- Τhe cost of building construction has increased
- Because you have added rooms or renovated
- Because you have increased the contents of your home or business
If your insurance is still for the same amount over the years, then most likely your building or contents is underinsured and your insurance does not fully cover you. To check if this applies in your case, simply compare the amount of insurance stated in the policy for buildings and contents, and find out if this is enough to rebuild it again today, and to repurchase the household furnishings and contents of the home or of your business. If you find that the insured value is less than the money needed to rebuild your home or business today, then you have an underinsurance problem, and you should notify us immediately so that we can increase the insured values so that you do not have a problem in case of a claim.
The average construction price for a typical family house today is close to 1,700 euros per sq. m, which is also confirmed by market professionals.
The average construction part for a typical apartment is estimated to be slightly lower.
If you have any questions, about the above information, we remain at your disposal to discuss and answer any questions you may have.
Quick tips
- Ask for the advice of an experienced appraiser for the correct calculation of your Property Insurance.
- Re assess the insured property at regular intervals and revise your insurance policy accordingly.
- Read the terms of your insurance policy very carefully and ask any questions you may have.
