The amount of the claim payment depends in part on the insured amount stated in the policy. Often the rebuild or demolition value. In order to ensure that the claim payment covers the actual damage, a proper adjustment is necessary. There are two options for this: the amount can be determined either yourself or by an appraiser. What are the advantages and disadvantages?
When entering into an insurance policy, the policyholder can choose to determine the insured value himself. The insurer is not involved and the insured amount is then established unilaterally.
The insured amount is included in the policy and the premium is calculated on this basis. Saves having valuation reports drawn up but the consequences of a wrongly chosen insured amount are then also at your own expense. In case of damage, the policyholder has to prove the value of the insured interest.
If the insured amount is determined by yourself, this increases the risk of underinsurance. If afterwards it turns out that the value for which the building is insured is lower than the actual value, this will be at your own expense.
With a reconstruction value appraisal, the insured amount is determined by an appraiser. This amount is then indexed annually so that the equal trend with the increase in value of the property.
With an appraisal by appraiser, the policyholder and insurer have agreed that the sum insured is equal to the value of the insured interest. With the policy with appraisal, the insured no longer needs to prove the value in the event of a claim, because that value is already established in the policy.
The advantage of appraisal is that there is no underinsurance because agreement on the rebuilding value is reached in advance. The premise here is that in the event of damage, full compensation is received.
Performing an appraisal is an investment that creates business continuity and is also financially beneficial in the long run.
Wondering what Base Insurance can do for you? Book a free 30-minute second opinion.Make an appointment
Why this is the time to take insurance under the loop
Put together a package and calculate a premium instantly
Protect construction projects best with these 4 points
Valuable insights for property insurance
How we respond to the latest trends in real estate.
Five benefits to cut costs and increase protection.
The differences between the products.
Easily request pieces online with our new feature.
These benefits have a visit from the insurer on your property insurance.
Secure your rental income with coverage for lost rent.
Checking insurance clauses cannot prevent payouts in the event of a claim!
Is the owner of a building always liable for damage caused by his building structure?
Why having buildings appraised provides long-term benefits.
Four factors that ensure a broker manages insurance cost-effectively.
How loss of rental income due to damage can be countered.
Going into 2022 full of security? Evaluate your insurance portfolio on these four points!
We are often asked whether it is necessary to insure foundations.
The clause automatic coverage as a safety net for expanding your portfolio.
Three points to consider when installing solar panels.
Energy label label C is mandatory for all Dutch offices starting in 2023.
Coverage overrides illegal activities.
4 questions answered about mandatory installation of smoke detectors in homes.
With this type of building, it is extra advisable to insure glass.
Downed trees and loose roof tiles; how can storm damage to property be mitigated?
The Netherlands has nearly 62,000 national monuments with historical aspects. How do we keep this intact?
While everyone agrees on the benefits of wooden high-rise buildings in this circular era, intractable long-term risks remain.
What are the most common damages during construction and how can continuity be ensured?
Three concerns that affect the premium for an investment portfolio.
Five points to consider when installing third-party solar panels.