October
Reinstatement Cost for Insurance – Have you got the right amount of cover?
Did you know that if you make a claim and the reinstatement cost is incorrect it could cause you a problem?
Affordable and professional insurance valuations
We have teamed up with rebuildcostassessment.com. To provide you with affordable reinstatement costs. Buildings insurance should cover the amount required to rebuild. Yet, fewer than one in ten commercial or residential properties in the UK are covered correctly.
If you are over-insured, you are paying too much for your building insurance. If you are under-insured, you face a reduced pay-out in the event of a claim. Insurance claims can be reduced by hundreds.
We are able to provide you with a comprehensive rebuild cost assessment (RCA) report guiding you on how much you should insure your building for. This is a fantastic and affordable online service. Which can protect your organization from the severe consequences of under insurance. Backed by the Royal Institute of Chartered Surveyors organization it lasts two years.
What is declared value and building sum insured?
The declared value is the value of the bricks and mortar. It covers everything fixed to the property including fitted kitchens and bathrooms from the day the policy starts. It is the most important figure. The sum insured figure is always higher than the declared value. This is to cover the cost or rise in building materials or inflation over the period of the insurance.
If your policy shows a building declared value and a building sum insured, then the policy itself includes an allowance for inflation. This means from the day your policy starts to the day of a potential claim it takes into account any sudden rise in inflation. Building materials and labour costs affect the declared value. So, the percentage increase in the building sum insured ensures that the building is never underinsured. Don’t be afraid of insurance terms we are here to help.
You need to understand that a lot of British insurers aren’t able to help with the rebuilding cost. There is a rebuilding cost calculator. But these can often be very complicated and a site visit may be needed. In respect of listed buildings, it is more than likely that you would need a chartered surveyor to attend the premises. There are a lot of articles on building cost information. But there is also BCIS rebuild cost calculator which will also be able to help you calculate your sum insured. They will list out whether it is standard construction. House types and what type of construction method was used in the property to completely rebuild it. These are all regulated by the Royal Institute of Chartered Surveyors. It is important that you get the right cover and that is why we have teamed up with the above company.
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