Typically, contents insurers ask you to specify an overall sum-insured for your stuff whilst imposing inner limits for high value items that aren't necessarily that clear. Our research has shown that most people simply guess at this amount.
Whether 20K or 100K people seldom actually think about their different valuables and what it might cost to actually replace them should the worst happen. We find using this approach is a false economy as, although disclosure may feel more streamlined, folks often end up being either over or under insured (or unaware that their really expensive tv isn't actually covered!).
By itemising your things you get to choose exactly what you want to cover therefore reducing the cost of insurance. Our customers can also tailor their cover to have accidental damage or not, thereby having greater control over buying cover to fit their lifestyle.
We find that this blanket approach to cover becomes even more problematic in the event of a claim (it becomes harder to ascertain the actual amount of claims compensation due). Not to mention, many insurers then apply something called 'average' if they perceive you to be underinsured. This means they reduce your claim amount in proportion.
By contrast, if a detailed and up-to-date inventory of high-value items is maintained - the claims process can be massively streamlined. (Making things feel easier and lighter-touch when you need our service the most.)
With this in mind, we are trying to encourage folks to spend more time than they might normally curating a list of named valuables. We don't insist on this being done pre-bind in a big-up-front disclosure event, but rather it can be done over time by customers. We are also exploring ways to automate, accelerate this process for customers so in the future we will do our best to give you the accuracy without the disclosure pain.
Wrisk is committed to helping folks create cover that is perfectly configured to their specific needs. We know we are asking a lot from our early-adopters in curating a list of the things they want to protect but rest assured – we intend to make this process much easier over time.
Potential enhancements we are already looking into include:
- Building a catalogue of items to help customers add items quickly and have replacement values suggested.
- Using image recognition to allow us to add key items simply by taking a picture
- Allowing customers to forward email receipts of purchased items to Wrisk to allow them to be added automatically
- Automatically identifying and adding items that are connected to your home wifi network.
By encouraging our customers to maintain a list of things they care about that stays up to date and moves with them as their circumstances change, we hope our they will be neither over nor underinsured.
Perhaps most importantly, should the worst happen, this extra detail will help us massively streamline the claims process and people back on their feet in no time.