Check your sum insured for a stress free claim

We are just coming to the end of a claim for a client based in Christchurch who had damage in the Canterbury earthquakes. To the insurers credit they paid out very quickly on the majority of the office contents.  The outstanding amount left on the claim is being used to pay for the fit-out of our client’s new offices.

This client had done things right on a number of fronts:

1. They had read their lease and identified they were responsible for insuring their office fit-out.

2. They had checked their photocopier agreement and insured it for $20,000.

3. They insured things for the correct value rather than the accountancy based "book value".

 

It’s really important to check leases and identify if you are responsible for insuring fit-outs. In this case the fit-out amount was $100,000 and by including this amount in their cover it meant they didn’t have to use money earmarked for the replacement of their office contents on partitions and walls at the new office location.

They also checked their photocopier lease which clearly identified the need for them to insure this item. Again, it would have impacted on their new office set-up as funds would have had to come from somewhere else to replace the machine that was damaged.

The "book value" of goods relates to accounting and tax values, not insurance values. If you have a replacement policy then items should be insured for their replacement value and not their book value - the difference can be enormous.


Allan Henderson

About the Author

Name: Allan Henderson        

I’m the Leader - Business Development & Sales for Rothbury’s Wellington branch. I have over 20 years experience in the insurance industry and get a kick out of finding insurance solutions for my clients.

I enjoy leading and…
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I’m the Leader - Business Development & Sales for Rothbury’s Wellington branch. I have over 20 years experience in the insurance industry and get a kick out of finding insurance solutions for my clients.

I enjoy leading and developing people (including my 3 children although they may not appreciate my leadership skills at times – or ever for that matter) and am part of a really experienced team who have a lot of fun here in Wellington.

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Disclaimer: The articles published on this blog are designed to provide general information and do not take into account any individual’s particular circumstances. We recommend that you obtain professional advice on your requirements before making any decision about a financial product.

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