INADEQUATE SUMS INSURED

In the event of any claim regardless of size, that any of your Sums Insured are determined to be inadequate, (such as on Buildings, Fixtures, Fittings & all other Contents, General Stock, Cigarettes & Tobacco, Wines & Spirits, etc.), your insurer will apply Average Clause, (IE. reduce the claim settlement by the same proportion.)

If you are underinsured by 50%, your claim will be reduced by half! For example, if you have a burglary where cigarettes to the value of €10,000 are stolen, your insurer will appoint a Loss Adjuster to call to you and deal with the claim. The first task undertaken by the Loss Adjuster is to check the adequacy/accuracy of your Sum Insured. If they find that your Sum Insured was €10,000, but that you actually normally carry a total stock of €20,000 then Average Clause will be applied and you will be allowed only €5,000 before deduction of your policy excess.

When determining the adequacy/accuracy of your Sums Insured, remember the following:

• Buildings = cost of rebuilding, site clearance/removal of debris, architects/surveyor’s fees. Also - Don't forget to include footing/foundation! This is critical for Subsidence claims! Service Stations - Don't forget to include your Underground Tanks!

• Fixtures, Fittings & all other Contents = Replacement on NEW for old basis, (ex-VAT- if you are VAT registered)

• Stock= cost price, (ex-VAT - if you are VAT registered)

Always remember - call us to discuss any/every incident. We will advise and guide you.