Building Insurance – How Much Cover Do You Need?
Many property owners still widely hold the belief that the market value of their property is the amount that they should insure their property for. Rarely will you find that the market value is the same as the rebuild cost of the property, which could leave the property owner under insured in the event of a claim.
How Do I Determine My Buildings Sum Insured?
The rebuilding cost will be the cost of demolishing and clearing away the existing structure and rebuilding it to its existing design in modern materials, using modern techniques, to a standard equal to the existing property and in accordance with current Building Regulations and other statutory requirements. Account should also be taken of Planning, Legal, Architects, Engineers and Surveyors fees.
An allowance will usually be made to account for situations where buildings are listed, or in a conservation area, replacement of the foundations (and temporarily making safe the damaged structure). In the case of attached structures (such as terraced properties) allowance will be made for the costs of replacing party walls and for the cost of protecting adjoining structures.
Benefits Of A Building Reinstatement Valuation
Many buildings are underinsured. A reinstatement cost assessment significantly reduces the risk of underinsurance and resultant financial penalty.
- In the event of a claim, the insurer or loss adjuster can immediately focus on the claim rather than an underinsurance issue, which might delay the repair process and lead to unrecoverable increased costs.
- The insurer receives and the policyholder pays the correct premium, being neither under nor over insured.
- Good corporate governance for commercial risks
- Buildings of historic or environmental value can be restored without being lost to the wider community due to lack of funds.
- Peace of mind to all parties of the insurance contact
How Do I Organise A Buildings Reinstatement Assessment?
There are two routes that we suggest:
- Seek the advice of a qualified surveyor who will be able to arrange this for you.
- Visit the Rebuild Cost Assessment website. Rebuild Cost Assessment offer an online service report guiding you on how much you should insure your building for. You can use our exclusive discount code, JHL20, in order to receive £20 off the price of a desktop assessment.
Posted by Jess Brown on April 29, 2019 in News | Leave a comment |