Property Insurance – Sums Insured
When determining the rebuild sum insured, it is important to take into account all of the following
1. The cost of rebuilding the structures, plus the following (where owned by you):
- Internal offices, fixed mezzanine floors, overhead cranes and other fixtures and fittings in and on the structures
- Internal and external fixed glass sanitary ware and signs
- Central heating systems
- Concrete paved or asphalt forecourts yards terraces drives and footpaths
- Walls, gates and fences
2. An additional 20% in respect of VAT (if you are not VAT registered)
3. Site clearance & debris removal costs
4. Architects & other professional fees
5. A provision for inflation
On reviewing all of the above, it may not be surprising to learn that up to 80% of properties in the UK are thought to be under-insured by circa 45% of their correct insurance value.
All too often property owners are aware of the current ‘Market Value’ of their properties. However, this can differ significantly from the actual ‘Rebuild Value’ upon which policy cover is based.
How Can We Help?
Whilst, as an insurance broker we are not qualified to advise on rebuild sums insured, if you are unsure as to the rebuild sum insured, or if this has not been reviewed for some time, we can assist by arranging:
– A Desktop Rebuild Cost Assessment (RCA), by RICS regulated Rebuild Cost Assessment Limited, at a cost of £133.50 per property, or
– A RICS Surveyor to visit your property to undertake a comprehensive buildings insurance rebuild valuation – from £500
We really do urge all property owners to review the adequacy of their sums insured, as these cannot be adjusted retrospectively. Most policies carry an average condition, whereby in the event of under-insurance a claim would be pro-rata adjusted in accordance with any degree of under-insurance.
For residential properties, you may visit the Association of British Insurers website and register to use their free residential rebuild cost calculator via the following web link http://abi.bcis.co.uk/calculator/calculator.aspx
Whilst property owners may be concerned that an increase in sums insured may impact on their premiums, our extensive panel of specialist property insurers enable us to enhance covers and in many cases secure premiums savings. Irrespective of when your policy falls due for renewal, please do contact us to discuss and review your covers.
Please contact us If there is any aspect of your insurance arrangements you would like to discuss.
Call Us on 01384 442 165
Office Hours (Monday – Friday, 9am-5pm)
We will gladly discuss and review your insurance requirements, and answer any questions you may have.