Rebuild Cost Assessment
Do you know if your property is underinsured?
We’re going to cut straight to the chase. Underinsurance is a pretty serious problem and the more policies we review – the more we see it. If you are underinsured, insurers will and can refuse to pay the full value of your claim.
What is Underinsurance?
A simple illustration of this is, you’ve insured your building for £150,000 and there is a fire which destroys the whole property. You then discover the cost to rebuild it is actually £300,000. Yep, you’re down by £150,000! That’s 50% of what it should’ve been insured for! Now imagine if this actually happened…
Insurers Average Rule
If you read the Terms and Conditions in your insurance policy you will find a condition that insurers call the ‘average’ rule. If your property is underinsured, most insurers will apply this when they calculate claims.
This means whatever amount you are underinsured for, they can, and will reduce the amount you are due to be paid by the same percentage in the example above. (This would be 50%!)
Let’s look at how this would work in reality; the building is insured for £150,000 but it should be insured for £300,000, you are underinsured by 50%. You have a claim for £50,000 but because you were underinsured by 50% the insurer only pays you 50% of the claim which is £25,000, leaving a deficit of £25,000 – Yikes.
How much does a Rebuild Cost Assessment cost?
£150 inc VAT if we do not currently provide your insurance.
£120 inc VAT if you are an existing client.
How will your Rebuild Cost Assessment affect my insurance premium?
This all depends upon the findings of the report and the subsequent action you choose to take. For example, if the report indicates you have insured your property by too much, you may be able to reduce the sums insured on your property, which in turn could lead to a lower premium. Conversely, if the report indicates you have not insured your property for enough, you may need to increase the sums insured on your property, which in turn could lead to a higher premium. It is important to remember that the potential financial impact of being underinsured could be severe in the event of a claim.
What exactly do I get for my money? Is there a report?
The whole purpose of this service is to supply you with a comprehensive Rebuild Cost Assessment report, which you can then use to help determine an adequate level of insurance cover for your property. The report provides a full breakdown of all calculations leading to our Rebuild Cost Assessment of your property and will also include building measurement, pictures and maps.
What does this product cover?
If you have not had a building valuation in the last 3 years then we would strongly recommend making this a priority. A Rebuild Cost Assessment ensures your commercial property is correctly insured and that in the event of a claim you don’t get any nasty surprises! Ultimately it gives you peace of mind.
We can offer a Rebuild Cost Assessment to any existing commercial property insurance policies sold by us and any new policies, whether it’s a buy to let, blocks of flats or purely a commercial property.
Types of properties we can cover:
- Vacant properties
- Industrial units
- Blocks of flats