Updating property value is crucial, says Sagicor

Updating the rebuilding cost of your property and the market value of your possessions is critical to ensuring that you would have to deal with less headaches when repairing or replacing anything you own, after suffering an unforeseen disaster or event.

This from Mark Prescott, Vice President – Insurance Operations at Sagicor General Insurance Inc, who is advising policyholders that they should always supply an accurate property valuation or market value for their contents, whenever reviewing and renewing their insurance policies.

The insurance professional stated that these updated valuations are not only used to determine the accurate premium rate for the upcoming year of coverage, but also to determine the rebuild or replacement value of the property or personal possession.

“If a property is insured for Bds$300,000.00, but the actual cost to replace it based on the current rebuilding costs is Bds$350,000.00, then one can see where a property owner would lose out if they had to suffer the unfortunate experience of losing their home to a natural disaster or some other unforeseen event, such as a fire”, said Prescott. “Therefore, it is in the interest of the property owner to update the rebuilding cost and market value of their contents on a regular basis to ensure that this discrepancy doesn’t exist.”

Prescott raised the concern that they have seen some examples of individuals choosing to insure their possessions at a lower value simply to save money.

However, he cautioned policyholders against this, arguing that it isn’t worth the risk, especially after looking at the events of 2021, with ash fall and the first hurricane to hit Barbados in 60 years, unexpectedly damaging several properties across the island.

“When it comes to property, more often than not we can see that building costs tend to increase, therefore if your insurance premium is based on an outdated valuation, the settlement you would receive today is likely to be less than what it would cost you to rebuild”, he stated.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 a Sagicor Advisor, or engage with one of the company’s team of knowledgeable representatives using one of many options, such as dialing 431-2800, sending a WhatsApp message to 467-7243, emailing sgi-info@sagicorgeneral.com , or connecting via SGI’s Instagram and Facebook pages. (PR)