"From a compliance perspective notional sum policies are a good option for brokers if their clients are unsure about the level of cover which needs to be put in place"
It is a notional product available to brokers using Ceta’s Infinity Platform that gives clients blanket cover for £1m on their property and £100,000 for contents.
Home insurance based on a notional sum insured is important when homeowners do not know the rebuild value of their property, which is not uncommon. Most clients may assume the amount of cover required should be the same as the market value of the property, which is not always the case. Unless a homeowner has had a recent survey carried out which specifies a rebuild cost, most clients have no idea how much cover needs to be put in place.
As renewal premiums are not index-linked national products may be more attractive in a growing inflationary environment.
James O’Hara, commercial director at Ceta Insurance, said: “Prestige Notional is a great addition to our suite of standard and non-standard products. From a compliance perspective notional sum policies are a good option for brokers if their clients are unsure about the level of cover which needs to be put in place and therefore could risk underinsuring themselves. We have already experienced a great response from brokers and we will continue to develop market-leading products that help brokers to sell high quality cover more efficiently.”
