Each insurer will stipulate their own Single Article Limit (SAL) for various sections within their policy. SAL normally applies to the more valuable items rather than general contents and/or buildings. Examples could include watches, jewellery, artwork, a canteen of cutlery, guns etc.
To illustrate, in a policy with SAL of £15,000, a watch specified at £12,000 would not need to be specified but it would still need to be insured within the total amount covered in the unspecified jewellery section. If however, the same watch was valued at £17,000, then this would need to be specified individually under the jewellery section, as this exceeds the SAL.
In the event of a claim for an item exceeding the SAL that has not been specified, the insurer may have the right to repudiate the claim – or, the most they will pay is the SAL. In the latter example, the client would suffer a loss of £2,000 for not being correctly insured. Quite a costly mistake, especially when the premium difference between sums insured would have been affordable.
TL Dallas has access to a number of Insurers who offer policies with generous SALs, providing you with more flexibility and peace of mind and alleviating any concerns about being underinsured. It also means you will not require proof of purchase or valuations for the smaller items to be covered on the policy. Having said that, it is recommended you update valuations every three to five years.
Examples of some Insurers Single Article Limits are shown below:
A number of insurers have increased their Single Article Limits over the past few years meaning more items can be covered by this method rather than being individually listed.
However, care must be taken when changing insurer to ensure that the Single Article Limit remains sufficient for your requirements.
If you feel your current policy is not providing you with the cover you require, or has restrictive limits, please contact Michael Gregson on 0131 322 2634 or email Michael.Gregson@tldallas.com to organise a complimentary health check of your insurance policies.