Valuations are completed for all sorts of reasons and often it can be for the comfort that the sums insured are accurate because none of us that work in the industry of valuations like to see claims or losses.
The benefit of a valuation is the client having a document that provides accurate figures in the right categories by a professional, providing proof of ownership – now, let’s get down to how valuations can really help you or your clients, and therefore – help you when a claim occurs.
Then comes the phone call that changes everything. Following a burglary, fire or escape of water, the policyholder is already distressed, only to discover that they may also be underinsured. The items themselves may have been damaged or disappeared entirely, leaving the claims team to establish what existed, what it was worth and what it will cost to replace. At that point, when everyone is looking for clarity, just how valuable does a current professional valuation become?
A current professional valuation does not prevent the loss. What it can prevent is the administrative fog, stress and weeks of anxiety that follows it. It turns what might otherwise become an exercise in post loss archaeology into a documented, intelligible claim.
At claim stage, the handler may need to establish an item’s identity, evidence of ownership or possession, pre-loss condition, policy limit and appropriate settlement basis. A valuation completed beforehand brings much of that together: clear photographs, maker and model, serial or reference numbers, dimensions, materials, hallmarks, and provenance are all factors taken into consideration when providing a valuation.
In my experience, a good valuer will talk to the client about an item at length to establish even the tiniest slices of information. They will then will research based upon that alongside the physical evidence (you would be surprised at how much is lost) of both parts during the claims process.
A valuation doesn’t remove the insurer’s right to make reasonable enquiries. It is, however, powerful contemporaneous evidence. Receipts, photographs, bank records and valuations can all contribute. Gathering them before a loss is infinitely easier than recreating them afterwards, and a good valuer will put all of these in order to provide a comprehensive report.
Sadly, if you suffer a fire or flood much of the supporting documentation can be destroyed however, the assistance of a valuation can easily be requested again.
The valuation must therefore state its purpose, date, assumptions and basis clearly. It must also be understood for what it is: it does not rewrite the policy, increase a limit or create different wording for the client, it gives evidence in the event of a loss, it is up to the broker or insurer to take care of the policy wording, and making sure that the client understands what they are covered for.
Often when we speak with clients, they have no idea of what they are actually covered for? Reading your policy wording is so important but none of us do until we need to and then it is too late. If all the contents are under ‘General Contents’ that doesn’t necessarily mean the Art and Antiques are covered which sadly one of our clients found out to his peril.
Valuations make claims handling easier, it’s that simple. On a straightforward, properly covered loss, an accepted current valuation can reduce repeated requests, unnecessary research and additional specialist post valuation work. It may allow a handler to reach a well-supported view far more quickly, and in some cases, clients will get paid out in hours, rather than months.
That does not make the loss adjuster obsolete. The Chartered Institute of Loss Adjusters describes a much wider role as – investigating cause, checking cover and conditions, assessing damage, quantifying loss and advising on recovery. Major fires, complex water damage, causation, fraud concerns and disputed coverage will continue to require that expertise. The point is to stop professional time being consumed by avoidable uncertainty over what a watch, painting or room full of general contents actually was. Where a valuation is conclusive, the adjuster can concentrate on the loss itself.
General contents is often the forgotten element, and never considered a big deal, but actually…it is – where the problem is often accumulation rather than one spectacular object. Sofas, curtains, rugs, lighting, clothing, kitchenware, audio-visual equipment and outbuildings can create a nightmare of post loss searching of bank statements, receipts and in many, many cases, things are forgotten.
A room-by-room valuation or walkthrough provides category totals, photographs and separately identified higher-value pieces. It gives underwriters better pre-renewal information and claims teams a working inventory, around 89% of the people we see display some underinsurance across their sums insured. That is not a statistic for every UK household, but it illustrates how declared figures and replacement exposure can drift apart, especially with ‘boring’ things such as washing machines and curtains increasing by huge percentages since 2020.
The best claim is not merely one that is paid, it is one that can be understood quickly, assessed fairly by the insurer and explained clearly by the client. A professional valuation, prepared while the objects are still there, gives the policyholder, broker, underwriter, claims handler and loss adjuster a far better chance of achieving exactly that.
At Doerr Dallas Valuations, we work with our clients to ensure their valuations reflect the risk, categorising assets correctly, itemising items giving a clear understanding of your assets, asking the necessary questions. Jewellery often can increase over policy threshold requirements, so updating valuations is easy once we have the information. Don’t find out when it is too late…give us a call today on 01883 722736 to find out about a valuation, it is easy and simple, we will do the work for you.