Ensure your insurance coverage reflects the value of your possessions

July 15, 2020

BRIDGETOWN, Barbados Sagicor General Insurance (SGI) Inc is advising its policyholders that they should always supply an accurate valuation whenever reviewing their motor, property or contents insurance policies.

According to Mark Prescott, Vice President – Insurance Operations, this is critical to ensuring that the premium each policyholder is quoted is reflective of the level of coverage they expect, in addition to providing them with the peace of mind that in the event of damage to or the destruction of any of their possessions, the settlement they receive will be the amount necessary to help them rebuild or replace what they have lost.

“Insurance premiums are determined by multiple factors, however, a major one is that of value of the vehicle, property or home contents the individual is seeking to insure. We have seen some examples of individuals choosing to insure their possessions at a lower value simply to save money”, said Prescott.

However, he cautioned policyholders against this, arguing that it isn’t worth the risk.

“Your vehicle devalues annually, therefore, if you choose to insure it at the previous year’s value, when the time comes to submit a claim to replace it due to an accident, you are likely to receive a settlement closer to the amount it is currently valued than what you had insured it for. On the other hand, if you chose to insure it for less than its value, the settlement amount would most certainly be less than what it would cost to replace the vehicle”, the Vice President explained. 

“As it relates to property, building costs often increase, therefore if your insurance premium is based on an outdated valuation, the settlement you would receive today is likely to be less than what it would cost you to rebuild”, he stated. “The same principles apply to contents insurance with the fluctuating value of electronics, jewelry, furniture, appliances and other personal possessions.”

The SGI executive therefore advised policyholders to reach out to any customer service representative to obtain advice before completing their next policy renewal.

Mark Prescott, Vice President – Insurance Operations
at Sagicor General Insurance Inc.