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    Policy details

    Hi on my insurance policy it states a 50% uplift. My understanding is that means insuring for 50% increase for inflation (in ONE year) for a potential rebuild!
    Have I understood this correctly and is this just yet another way to inflate the premiums?
    50%???
    Thanks
    Michelle

    #2
    When you asked your insurer what did they tell you? Without seeing ALL the policy details (please don't supply..) it's very difficult to comment: e.g. "50% uplift" could me they pay out 50% more than you are entitled to (unlikely I know, but...)
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

    Comment


      #3
      Uplift is a policy feature provided by some insurers to give added protection for an increase in sum insured due to inflation between the declared value at the inception/renewal of a policy and the incident date of a claim. Any value upto 50% is a common amount provided by this feature which obviously sounds generous but they are realistically providing a fraction of this based on the current inflation rates.

      I certainly wouldn't look at this as a "way to inflate premiums" but as an inclusive extra on your policy that others may not have and could prevent you from being under-insured at the time of a claim.
      Steve Smith - Company Director at a leading Landlord Insurance broker with 20+ years experience in the industry
      LandlordZONE Verified Poster and Topic Expert for Landlords Insurance since 2009
      See my profile for contact details

      Comment


        #4
        Originally posted by ashburnham View Post
        Uplift is a policy feature provided by some insurers to give added protection for an increase in sum insured due to inflation between the declared value at the inception/renewal of a policy and the incident date of a claim. Any value upto 50% is a common amount provided by this feature which obviously sounds generous but they are realistically providing a fraction of this based on the current inflation rates.

        I certainly wouldn't look at this as a "way to inflate premiums" but as an inclusive extra on your policy that others may not have and could prevent you from being under-insured at the time of a claim.
        They have also inbuilt an automatic 12% increase on rebuild costs so 50% uplift on top shouldn`t be necessary surely?

        Comment


          #5
          Ask your insurer how much your premium would be reduced to if that 50% clause wasn't there.
          My guess is it's a very small element of the policy cost.

          Or get a policy from someone else.
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment


            #6
            I would doubt uplift can be removed from a policy but I might be wrong. This is normally just a feature built in to some policies as standard.

            You mention an automatic 12% increase. Buildings policies will usually be "index-linked" so that each year the sum insured is increased in line with increasing building costs. This index-linking figure fluctuates and is a lot lower than 12% at the moment. I'm therefore not sure what this fixed 12% increase is that you refer to?

            I feel it is probably best to discuss this with your current insurer as all we can do is speculate on what your policy is offering. It does sound like there is a lot of additional features being provided around being under-insured (which is obviously a good thing) but you will need to discuss with them if they can be removed (if indeed you don't want this added protection) to reduce your premium. Ultimately there is nothing stopping you from shopping around if you feel your premium is still too high.
            Steve Smith - Company Director at a leading Landlord Insurance broker with 20+ years experience in the industry
            LandlordZONE Verified Poster and Topic Expert for Landlords Insurance since 2009
            See my profile for contact details

            Comment


              #7
              Is the annual insurance cost per flat excessive for your size of flat ?

              Does the wording in the lease say " the lessor has sole right to decide the insured cover under the policy" ?

              Comment


                #8
                Hi thanks for taking time to reply.
                Yes - it does say in the lease that the freeholders have the right to insure.
                However I spoke to the Lease Advisory Service and they said I only need to be insured for what it says in my lease. Therefore expecting me to insure their hundreds of riskier properties and cover them for loss of their tenants rent, covering for their court/eviction costs against tenants, accidental damage etc is not acceptable.
                The 12% mentioned above was told to me incorrectly. I worked it out at about 3%. So that part is ok. See this for rci rebuild figures. It seems it is now built in automatically to many policies in order to increase premiums https://abi.bcis.co.uk/

                Comment

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