The latest data from RebuildCostASSESSMENT reveals a massive shortfall in cover among UK commercial properties. The insurance valuation providers estimate that buildings occupied by businesses in Britain are underinsured by a whopping £325 billion.
“What this means is hotels, shops, factories, warehouses and many other types of commercial buildings across the country are woefully under-protected in the event of any kind of damage,” said James Scott-Brown, director at Rebuild Cost Assessment Ltd.
“With businesses already struggling financially, many simply would not currently survive the consequences of underinsurance, which unfortunately many property owners and small firms in particular are unaware of.”
James went on to explain that nine out of 10 properties in the UK are insured for the wrong amount. The vast majority (79%) are underinsured, which means that when a claim is made, the amount paid out to cover the damage can be severely reduced.
Underinsurance often leads to disputes with insurers and in severe cases may even put firms out of business. On average, we find that buildings are only covered for 69% of the amount they should be, leading to a considerable shortfall in cover.
It’s not only businesses that suffer. RebuildCostASSESSMENT estimates that the owners of as many 580,000 homes in the UK worth more than £1m each are also significantly underinsured.
We at Northcott Beaton Insurance Brokers take time to check with our clients that they are sure that their Sums Insured are adequate but too many make an educated guess. It is not the Brokers job to come up with these figures and the only way to be 100% certain is to get a professional valuation.
This can be done very cheaply.
We have been working with RebuildCostAssessment for some time and in a lot of cases they can offer a desktop valuation to provide the very important figures needed to ensure you have full cover. In 14% of cases there has been over insurance which of course means you may be paying more than you need.
Some people are under the wrong impression that valuers will steer valuations to suit the circumstances ie Mortgages but this couldn’t be further from the truth, please don’t delay and act now.
If you would like to arrange a rebuild cost valuation for your property contact us on [email protected] or Telephone 01392 426046