Our friends at UK Specialist Risks outline the dangers of being under-insured...
Have you ever considered what would happen if your insurance policy fails to cover the entirety of your loss if the worst comes to the worst for your band?
Unfortunately, this scenario is a common occurrence for bands, clubs and organisations across the UK.
It is important that the declared value of your instruments, uniforms, libraries, cases, mutes, stands and all other contents is reflective of the entire replacement cost.
Too often, organisations will declare a lower value with the mindset that it won't all get destroyed at once.
This is one of the leading causes of under-insurance, whereby lower values are intentionally declared with the view of paying a lower premium. However, should a more devastating loss occur, such as a fire or flood, bands can find themselves with financial difficulty as insurers will not pay out for the total claim.
Another cause of under-insurance is where a figure is given when the policy is first incepted, however as time progresses these valuations become outdated or altogether incorrect as new items are purchased, retail prices increase, and circumstances change.
If the band owns the band-room, it is important that you think about rebuild costs when calculating the sum insured for the property.
However, much of this is down to your insurer as well. Many insurers will not contact you to discuss changes that have occurred over the previous year and will simply invite renewal on the same values.
An annual review of your policy is key to ensuring you are at less risk of being under-insured.
An annual review of your policy is key to ensuring you are at less risk of being under-insuredUK Specialist Risks
If you are interested in speaking to a Brass Bands insurance specialist to make sure you have the correct cover in place please contact us on 01634 661406 or visit our website https://ukspecialrisks.co.uk/brass-bands/