Letter To Increase Sum Insured: How To Draft It Right!

When it comes to insurance, it’s essential to regularly evaluate your coverage to ensure it aligns with your current needs. If you find that your sum insured is insufficient to cover potential losses, it’s a wise decision to request an increase. 


One of the most effective ways to communicate your request is by writing a letter to your insurance provider. In this step-by-step guide, we will outline the process of writing a persuasive letter to increase your sum insured.

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Step 1: Research your policy and requirements

Before drafting the letter, carefully review your current insurance policy. Take note of the coverage limits, deductibles, and any specific terms related to sum insured. Additionally, research the factors that warrant an increase in your sum insured. For example, you might consider recent changes in property values, market trends, or personal circumstances.

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Step 2: Gather necessary information

To support your request, gather relevant information that substantiates the need for an increased sum insured. This may include property appraisals, receipts for recent renovations, market analysis reports, or any other documentation that showcases the current value of your insured property.

Step 3: Format your letter

Begin by placing your name, address, and contact information at the top of the letter. Include the date of writing, followed by the recipient’s details, such as the insurance company’s name, address, and contact information. Address the letter to the appropriate department or individual.

Step 4: Write a compelling introduction

In the opening paragraph, clearly state the purpose of your letter and provide an overview of your policy, including the current sum insured. Express your appreciation for being a valued customer and briefly mention your positive experience with the company.

Step 5: State the reasons for the increase

In the subsequent paragraphs, articulate the reasons why you believe an increase in the sum insured is necessary. Be specific and provide supporting evidence to strengthen your argument. Include details about changes in property values, improvements or additions you’ve made, or any other factors that have affected the value of the insured property.

Step 6: Include supporting documentation

Attach copies of the supporting documentation you gathered in Step 2. This will add credibility to your request and enable the insurance company to assess the situation accurately. Ensure that you label and organize the attachments appropriately, referring to them in your letter as necessary.

Step 7: Request the desired increase

Clearly state the specific amount or percentage by which you would like to increase your sum insured. Be reasonable and provide justification for the requested increase based on your research and the supporting documentation. Remember to strike a balance between asking for a reasonable increase and ensuring your property is adequately protected.

Step 8: Express willingness to pay additional premiums

Acknowledge that an increase in the sum insured may result in higher premiums. Assure the insurance company that you are willing to pay the appropriate additional premiums to secure the desired increase. This demonstrates your commitment and financial responsibility as a policyholder.

Step 9: Conclude the letter

In the closing paragraph, restate your request for an increased sum insured and express gratitude for the insurance company’s attention to your letter. Provide your contact information once again and invite the recipient to get in touch if they require further information or have any questions.

Step 10: Proofread and send

Take the time to carefully proofread your letter for any grammatical or spelling errors. Ensure that your tone is professional, polite, and respectful throughout. Once satisfied with the final draft, print the letter, sign it, and send it through certified mail or email, depending on the company’s preferred method of communication.

Template 1: Requesting an Increase in Sum Insured for Health Insurance

[Your Name]
[Your Address]
[City, State ZIP Code]

[Date]

[Insurance Company Name]
[Address]
[City, State ZIP Code]

Dear Sir/Madam,

I am writing to request an increase in the sum insured for my health insurance policy with your company. The policy number is [insert policy number here].

I have been a loyal customer of your company for [insert number of years] years and have always received excellent service from your team.

As you know, healthcare costs have been rising steadily over the past few years, and I am concerned that my current sum insured may not be sufficient to cover my medical expenses in case of a serious illness or injury.

Therefore, I would like to increase my sum insured from the current amount of [insert current sum insured here] to [insert requested sum insured here].

I am willing to pay any additional premium that may be required for this increase, and I request you to provide me with a quote for the same at the earliest. I am also open to discussing any other options that may be available to me to enhance my coverage.

I hope you will consider my request and provide me with the necessary guidance to increase my sum insured. Thank you for your attention to this matter.

Sincerely,

[Your Name]

Template 2: Requesting an Increase in Sum Insured for Life Insurance

[Your Name]
[Your Address]
[City, State ZIP Code]

[Date]

[Insurance Company Name]
[Address]
[City, State ZIP Code]

Dear Sir/Madam,

I am writing to request an increase in the sum insured for my life insurance policy with your company. The policy number is [insert policy number here].

I have been a policyholder with your company for [insert number of years] years and have always received prompt and efficient service from your team.

As my family has grown over the years, I am concerned that my current sum insured may not be sufficient to provide for their needs in case of an unfortunate event.

Therefore, I would like to increase my sum insured from the current amount of [insert current sum insured here] to [insert requested sum insured here].

I am willing to pay any additional premium that may be required for this increase, and I request you to provide me with a quote for the same at the earliest. I am also open to discussing any other options that may be available to me to enhance my coverage.

I hope you will consider my request and provide me with the necessary guidance to increase my sum insured. Thank you for your attention to this matter.

Sincerely,

[Your Name]

Template 3: Requesting an Increase in Sum Insured for Home Insurance

[Your Name]
[Your Address]
[City, State ZIP Code]

[Date]

[Insurance Company Name]
[Address]
[City, State ZIP Code]

Dear Sir/Madam,

I am writing to request an increase in the sum insured for my home insurance policy with your company. The policy number is [insert policy number here]. I have been a customer of your company for [insert number of years] years and have always been impressed with your professionalism and customer service.

As the value of my home has increased over the years, I am concerned that my current sum insured may not be sufficient to cover the cost of rebuilding or repairing my home in case of damage or loss due to an unforeseen event. Therefore, I would like to increase my sum insured from the current amount of [insert current sum insured here] to [insert requested sum insured here].

I am willing to pay any additional premium that may be required for this increase, and I request you to provide me with a quote for the same at the earliest. I am also open to discussing any other options that may be available to me to enhance my coverage, such as adding riders for specific risks or increasing my liability coverage.

I understand that an increase in the sum insured may require an appraisal of my property, and I am willing to cooperate with your team to provide any necessary documentation or information for this purpose.

I hope you will consider my request and provide me with the necessary guidance to increase my sum insured. Thank you for your attention to this matter.

Sincerely,

[Your Name]

Frequently Asked Questions (FAQs)

Q1: What is a Letter to Increase Sum Insured?

Answer: A “Letter to Increase Sum Insured” is a written communication addressed to an insurance company, requesting an upward adjustment in the coverage amount provided by an insurance policy. It outlines the reasons for the increase, presents supporting evidence, and expresses the policyholder’s willingness to pay additional premiums to secure the desired increase.

Q2: Why would I need to write a Letter to Increase Sum Insured?

Answer: There are various reasons why you might need to write such a letter. Some common reasons include changes in property values, renovations or improvements made to the insured property, increased replacement costs, or changes in personal circumstances that require a higher coverage limit. 

Writing a letter allows you to formally communicate your need for an increased sum insured and provide supporting information to the insurance company.

Q3: How should I begin a Letter to Increase Sum Insured?

Answer: Start your letter by addressing it to the appropriate department or individual at the insurance company. Begin with a professional salutation, such as “Dear [Insurance Company Name] or “To Whom It May Concern.” In the opening paragraph, clearly state the purpose of the letter, mentioning that it is a request to increase the sum insured for your policy.

Q4: What supporting documents should I include with my Letter to Increase Sum Insured?

Answer: Include any relevant supporting documentation that substantiates the need for an increased sum insured. This may include property appraisals, receipts for recent renovations or upgrades, market analysis reports, or any other documentation that demonstrates the current value of the insured property. Label and organize the attachments appropriately and refer to them in your letter as necessary.

Q5: How should I justify the increase in my Letter to Increase Sum Insured?

Answer: In your letter, clearly state the reasons for the increase and provide supporting evidence. Explain any changes in property values, market trends, or personal circumstances that have affected the insured property’s value. 

Use factual information, such as recent sales data or professional appraisals, to strengthen your argument and justify the need for a higher coverage limit.

Q6: Should I mention my willingness to pay higher premiums in the Letter to Increase Sum Insured?

Answer: Yes, it’s important to express your willingness to pay the additional premiums associated with the increased sum insured. Assure the insurance company that you understand the potential increase in premiums and are prepared to pay the appropriate amount to secure the desired coverage. This demonstrates your commitment and financial responsibility as a policyholder.

Q7: How should I conclude my Letter to Increase Sum Insured?

Answer: In the closing paragraph, restate your request for an increased sum insured and express gratitude for the insurance company’s attention to your letter. 

Provide your contact information once again and invite the recipient to reach out if they require further information or have any questions. End the letter with a professional closing, such as “Sincerely” or “Thank you.”

Q8: How should I deliver the Letter to Increase Sum Insured?

Answer: Depending on the insurance company’s preferred method of communication, you can either send the letter via certified mail or email. 

If sending it by mail, use certified mail with a return receipt to ensure proof of delivery. If sending it by email, use a professional tone and consider attaching the supporting documentation as scanned or PDF files.

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