Value at Risk
Underinsurance
Underinsurance is becoming a growing concern in Ireland, affecting homeowners, businesses, and even individuals with personal cover.
While many people believe they are fully protected by their insurance policy, the reality is that being underinsured can leave you exposed to significant financial risk when you need cover the most.
Why is Underinsurance a Problem in Ireland?
Several factors are driving underinsurance here:
- Rising construction costs – Inflation in building materials and labour has pushed up the cost of repairs and rebuilds.
- Outdated policy values – Many policies are not reviewed regularly, leaving sums insured far below current market realities.
- Business equipment and stock – For SMEs, rapid growth or price increases in stock often aren’t reflected in updated cover levels.
- Lifestyle changes – Renovations, extensions, or new purchases may not be declared to insurers.
The Risks of Being Underinsured
- Reduced payouts in the event of a claim.
- Potential inability to rebuild a property or replace business assets.
- Financial strain on households and companies already facing higher living and operating costs.
The Importance of Value at Risk Assessments for Businesses
In today’s business environment, Irish companies face increasing costs, new risks, and growing financial pressures. Yet many businesses are unknowingly leaving themselves exposed by being underinsured.
A Value at Risk (VaR) assessment can help ensure your insurance cover truly reflects your business needs.
What is a Value at Risk Assessment?
A VaR assessment looks at the potential financial loss your business could face if the unexpected happens—whether through fire, flood, theft, or disruption to operations. By accurately valuing your property, stock, equipment, and potential lost income, it ensures your sums insured are realistic and up to date.
Why It Matters for Businesses in Ireland
- Avoiding underinsurance – Inflation and rising rebuild costs mean many businesses’ cover is already falling short.
- Stronger business continuity planning – Knowing your potential exposure helps you plan recovery strategies more effectively.
- Improved negotiations with insurers – Accurate figures give you leverage when reviewing cover and premiums.
- Meeting governance standards – Demonstrating risk awareness supports compliance and reassures stakeholders.
How Loss Assessing Solutions Can Support You
At LAS, we specialise in protecting Irish businesses by:
- Carrying out independent Value at Risk assessments tailored to your sector.
- Identifying gaps in cover that could affect your claims.
- Offering expert claims support if you ever need to make one.
- Providing ongoing advice so your cover evolves as your business grows.
Take Control of Your Risk
A Value at Risk assessment isn’t just about insurance—it’s about peace of mind. With the right sums insured in place, you can face the future with confidence, knowing your business is fully protected.
If you’d like to review your cover or arrange a Value at Risk assessment, the team at LAS is here to help.
Talk to us about your loss now, for peace-of-mind that your claim is in the best hands
Your dedicated Loss Assessor will walk you through every stage of your claim. We’ll keep you in control, fight to get the settlement you’re entitled to, and work hard to get you back into your home or business – as quickly as possible.