Understanding Underinsurance: A Hidden Risk in Home Insurance
Underinsurance is a significant risk that many homeowners neglect when securing their properties with insurance. This oversight can lead to substantial financial losses, particularly in an era marked by escalating construction costs and high inflation. Homeowners may find themselves facing a considerable gap in coverage if their assets are not insured at their true value.
Underinsurance is not only a threat to individuals but also poses a risk to businesses. For companies, underinsured machinery and facilities can result in not just financial setbacks but also interruptions in production, market share loss, and damage to reputation.
Industry Insight: The Importance of Adequate Insurance Coverage
Barış Altın, Technical President and Executive Board Member of AXA Turkey, highlights the gravity of underinsurance within the industry. He notes, “Underinsurance is one of the most pressing challenges we face. At AXA Turkey, we aim to not only provide support during claims but also to help our clients identify and manage potential risks before they materialize.”
Insurance should not be viewed merely as a formality; it plays a crucial role in safeguarding one’s future. Therefore, it’s essential to maintain insurance policies regularly and ensure they reflect the current value of the assets they cover.
AXA Turkey’s Approach to Mitigating Underinsurance
To address the risk of underinsurance, AXA Turkey implements automatic updates in policy renewal processes, taking into account building unit costs and inflation rates. This proactive approach helps ensure that coverage remains accurate and sufficient. Additionally, AXA Turkey offers comprehensive support through digital insurance cost calculators and expert consultancy services to better equip their clients.
