When you arrange your insurance, please make sure the amount of sum insured is correct by the following:
1. Remeber that all insurance policies include an ‘average clause’ which means that if you have underinsured yourself, then you will not receive full payment in the event of a claim. For example, if the true full replacement value of the goods is £20,000 but you only insure for £10,000, any claim settlement will also be reduced by 50% because you have only insured for 50% of the risk. It is vital that you insure for the full replacement cost.
2. Cover of the policy is new for old (full replacement value) with the exception of clothing and linen. So the sum insured must also be calculated on this basis to avoid the problem of underinsuring your belongings, as detailed above. Even if an item is 10 years old, in the event of the total loss or destruction of the item the insurer will pay for a brand new replacement item. But this will only be the case if you have insured correctly.
3. In the case of ‘specialist’ items such as artwork, or antiques, or any other items which cannot be easily valued by checking list prices it is important that you have evidence of the replacement value prior to placing the items in storage. This could be by way of a professional valuation, or a purchase receipt or an auction catalogue. in the event of a claim you will be required to prove the value you are claiming and if you are unable to do so you may not receive the settlement you require.
4. If you are storing goods you intend to sell, this should be insured for their cost price, as insurers will not reimburse you for the potential profit. The basis of the insurance is the cost to replace the value. This level of insurance cover is available if required but you must seek this personally.
5. In the case of paper archives, the policy covers the reasonable cost of printing and/or re-issue and/or reconstitution including, where applicable, fresh research or exploration to obtain essential information. It is your responsibility to assess the likely expenses when setting the sum insured, as you will need to be able to substantiate these in the event of a claim.
6. If your goods will be in store for a lengthy period of time ensure you regularly review the sum insured and keep up to date with changes to the items stored, fluctuating replacement costs, and so on. If insuring through Blue Box Storage this can be updated on a monthly basis.
7. It may be useful to make a list of the goods that you are placing into storage with the full replacement costs of the item(s) prior to moving into Blue Box Storage. A copy can be attached to your licence agreement.
8. Insurance policies have certain exclusions or restrictions, especially on certain high risk or high-value items. Be mindful of these as some items may not be covered without prior consent or may void your insurance altogether. These items are listed on our Summary of Insurance when you sign.