Insurance scam

For how long will we continue to fall victim to the “Great Insurance Scam” and pay vastly inflated premiums based on the hypothetical “reinstatement” values of our dwelling houses? In most cases these values would never actually cover the brick-by-brick reinstatement of our houses even if we were prepared to wait years for the reinstatement to be carried out. Instead, the truth of the matter is that even if our home was burned to the ground our loss would normally be restricted to its market value, which would enable us to purchase a comparable property.

There was a time when nearly all of us insured for market value. How and why has the change occurred?

M BRUCE Edinburgh