Avoiding Underinsurance on your Beach Hut or Chalet
Unfortunately, underinsurance only usually comes to light when one of our policyholders at Love Your Hut has a claim to their beloved beach hut or chalet.
At Love your Hut we will not penalise you for underinsuring and make a deduction from your claim, but we would emphasise that not insuring for the right value can mean that you will need to find additional money to cover the cost, over the sum you have insured your hut for. Indeed, reinstatement following a total loss could find you having to dig deep into your pocket.
What you need to be aware of and ways to spot if your hut is underinsured:
- Your policy is not index linked, unlike household insurance. This is because the sums insured are small in comparison and index-linking may not be sufficient to keep up with market values, so you need to regularly review your hut and its contents sum insured.
- Where you have extended, altered or enhanced the hut it has quite possibly increased in value and you may need to increase your sum insured. Many people are using different materials, such as fibreglass or new woods hardened against the weather which are more expensive than the original timber, so this needs to be considered.
- Where the hut has been totally rebuilt to a higher standard make sure you advise us of the new sum insured.
- Consider where the hut is built on stilts, has a veranda, a storm door or shutters that may add to the replacement cost.
- Where you have replaced or added to the contents make sure you notify us of the revised sum insured.
Always ensure that sums insured are calculated on the correct basis:
- Buildings – this should represent the full cost of rebuilding the hut to its existing specification, not forgetting to include any fees, plus the cost of debris removal. The cost of debris removal is particularly important. Following the storm surge of 2013, some Councils have insisted that the sum insured includes this, even in some cases specifying the amount to be insured for.
- Contents – this should represent the full replacement value of the entire contents of the hut, excluding any fixture and fittings.
Arriving at the correct sums insured is not always easy and we have some tips for you:
- Buildings – the best way is to ask a local contractor. If you do not know a contractor then your local Beach Hut Association can help and point you in the right direction.
- Contents – complete a checklist of the items kept in the hut including, kitchen equipment, crockery, chairs, beach stuff. We have created a Beach Hut Contents Inventory to help you. It’s available on our website, www.loveyourhut.co.uk or contact Love Your Hut on 0333 207 5644.
Your Hut is important to you – that’s why it’s important to us! Make sure you are insured for the correct sum insured.
If you have any questions and want to discuss your sum insured then please contact Love Your Hut on 0333 207 5644.