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Why Is Property Insurance So Important?

property insurance

Why Is Property Insurance So Important?

Ensuring you have the correct property insurance is very important these days so I thought I would catch up with James Morris from Arthur J. Gallagher Insurance broker Limited (Gallagher) to find out more. 

Firstly, Gallagher is a global insurance brokerage, risk management and consulting firm which dates back to 1927. They offer a range of insurance products and services to individuals, businesses and organisations such as property and casualty insurance, employee benefits, risk management, personal insurance and speciality insurance. 

Sales & Development Manager, Private Clients Division, James Morris focuses on providing private Gallagher’s clients with household and private motor insurance. “I’m particularly passionate about insuring and protecting client’s assets to ensure any risk is kept to a minimum,” says James. 

At Gallagher insurance brokerage, they also offer risk management services such as advice on security such as alarms and safes, valuation/risk surveys on properties and their contents and belongings. They work with insurers to allow them to get ahead of industry curves in respect to increased claims scenarios. 

I asked James what the most common thing he comes across when selling insurance that most people wouldn’t be aware of… “The misconception that insurance is difficult or that insurers are not willing to assist with claims. We aim to ease the burden on the consumer by doing the ‘heavy lifting’. We will work with insurers that we see fit for the risk that we are quoting, approach them to obtain the most competitive terms and then explain the coverage in layman terms to ensure the client is fully aware of the coverage but also that it meets with their expectations. We prefer to bring any small print to the forefront and deal with issues directly rather than hide away,” says James.

Why is property insurance so important? 

Property insurance is crucial for several reasons:

Protection against Loss: Property insurance provides financial protection against damage or loss to physical assets such as homes, businesses, and personal belongings. It covers various perils like fire, theft, vandalism, and natural disasters, ensuring that the policyholder does not suffer significant financial loss in case of an unforeseen event.

Mortgage Requirement: If you have a mortgage on your property, your lender will likely require you to have property insurance. This is because the lender wants to protect its investment in case the property is damaged or destroyed. Without insurance, you may not be able to secure a mortgage or could risk foreclosure if you fail to maintain coverage.

Liability Coverage: Property insurance often includes liability coverage, which protects you in case someone is injured on your property or if you accidentally damage someone else’s property. Liability claims can be costly, so having insurance to cover legal fees and potential settlements or judgments is essential.

Peace of Mind: Knowing that your property is insured provides peace of mind. You can rest assured that if something unexpected happens, there can be financial protection to help you recover and rebuild. This sense of security can be invaluable, especially in areas prone to natural disasters or high-crime areas.

Legal Requirements: In some cases, property insurance may be required by law. For example, if you own a vehicle, you are typically required to have insurance to cover liability in case of an accident. Similarly, landlords may be required to have insurance to protect tenants and comply with local regulations.

Overall, property insurance is essential because it helps protect your financial wellbeing and provides a safety net in case of unexpected events or emergencies.

Why working with an insurance brokerage can help you

James shared an example of a success story that illustrated the effectiveness of the service he provides…

“I had a client recently approach me asking to assist with their existing property insurance. They were on a blanket based policy with an online price comparison site. The insurance covered the buildings up to £1 million to rebuild which was clearly insufficient for a property of its size. After discussing our fear that they were underinsured, they mentioned that they also had some fear that this was the case and therefore happy to take our advice. 

We approached an insurer with a corrected figure to rebuild the property at £2 million, include some coverage for some jewellery and artwork that was missing from the existing insurer and still came in a couple of hundred pounds cheaper than the existing insurer. It really does prove that it’s always worth a conversation and in fact an increase in cover doesn’t always mean an increase in premium!”

If you would like any further information about property insurance from Gallagher, then please get in touch via their website

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