Is your building insured adequately to cover the cost of reinstatement in the event of a loss?

In far to many claims handled by our offices the evidence to hand suggests that in around 70% of cases the answer is no, and we frequently find the buildings we value to be underinsured by as much as 50% or more. This may be due to a number of factors not the least that values have been ascribed from a historic survey and the vagaries of index linking have been applied without noting for instance the difficulties of site access or an unusual  method of construction.

So why take the risk of being underinsured?

If the sum insured has not been professionally calculated then the first time you will know whether it’s adequate is at the point of making a claim immediately following a loss.

If at this time the building is found to be underinsured then Insurers may apply ‘Average’ which could have serious financial implications in the event of a claim.

For example, if the declared sum insured for a house is £500,000 but the actual cost of reinstatement is then calculated to be £1,200,000 then in this example in the event of a loss, the property owner would be self insuring 58% of the reinstatement costs irrespective of the value of the claim.

For the relatively small cost of obtaining a professionally assessed valuation there are a number of benefits, here are the main ones:

What can we provide

• Comfort that the sum insured will be adequate in the event of a claim

• Avoid underinsurance penalties

• Remove any disagreements surrounding the adequacy of cover in the event of a claim

• Plan for maintenance as defects can often be revealed during our Chartered Surveyors visit.

• We have the unique advantage of seeing the pitfalls both as  Surveyors and Insurance Claims specialists.