Underinsurance is when the amount you insure your belongings for is less than what it would actually cost to replace them. Many policies then settle a claim in proportion: if you insured things for half their true value, you get back about half of any loss, even if only one item was damaged.
At Wigwam
Everything you store with us needs contents cover, either through our contents protection or your own policy, and every customer tells us a maximum replacement value: what it would cost to replace everything in the unit as new today. If you take our cover, the charge is based on that figure.
It can be tempting to keep the figure low, but getting it right is what makes your cover work for you. If the value you declare is lower than the true value and you need to claim, the settlement is reduced in proportion: declare half of what your things are worth and you’d get back half of the loss.
Two habits keep you properly covered:
- add it up room by room at today’s prices, including anything still to come on later trips;
- if you add more to your unit later, call us on 0800 2545585 before the extra things go in, so your figure keeps pace.
If you use your own policy
You still tell us a replacement value, so we know the total value of what’s stored. Check that your policy covers goods kept in self storage and that its sum insured is enough for what’s in your unit as well as what’s at home. If you’re waiting to hear from your insurer, take our contents protection when you move in, and send us proof of your own cover within 14 days of moving in for a full refund of those charges.
Related terms
Related questions
Further reading
- Financial Ombudsman Service: Underinsurance in home insurance complaints