BUILDINGS INSURANCE: WHY CHECK?
At RebuildCostASSESSMENT.com we assess more than 2,000 commercial properties every year, from shops and hotels to offices and factories. Our data shows that more than 84% are either over or underinsured.
This means there is a strong chance that your commercial property is not covered for the right amount. The implications of this can be extremely costly, sometimes so costly that you could lose your entire business! There are all kinds of reasons why your building may not be covered for the correct amount. For example, many property owners insure for the "market value" of their property. But that is incorrect. Properties should always be insured for the actual cost to rebuild.
So what are the implications?
Let's begin with over-insurance, which affects almost one in 5 commercial property owners. It's true that it is better to be over-insured than under-insured. You'll find out why in a moment. However, if your property is over-insured, you could be paying almost double the amount you should be for your commercial buildings cover. Over the years this unnecessary expense can seriously add up.
Under-insurance can have far more severe consequences. This is because insurers have something they call the “Average Clause”. Sounds complicated, but it’s not. Here’s how it works: Let’s say your property is insured for £1,000,000, but the actual cost to rebuild should be £2,000,000. Here, any insurance claim you make for the property could be reduced by 50%. In this example you would need to find £1,000,000 of your own money to cover the cost of rebuilding your property following a major incident, such as a fire that completely destroys your building. Could you afford £1,000,000? For some, a reduced claims payment as a result of underinsurance has meant they've gone out of business. Around two thirds of commercial properties are underinsured and are normally covered for just two thirds of their correct rebuild cost. Is your property one of them?
So what can you do?
The simple solution is to insure for the correct amount. Normally, this involves finding a trusted expert who visits your property to complete a professional assessment. This can be both time-consuming and highly expensive. However, at RebuildCostASSESSMENT.com we offer a unique low-cost online service. For just £160.00 (incl VAT) we can provide you with a comprehensive Rebuild Cost Assessment (RCA) report without ever having to visit your premises. You can find out more on how we can do this here. We also offer on-site assessments as a premium service at unbeatable prices.
Our report advises you of the rebuild cost of your property and guides you on what action to take. As we are a 'Regulated by RICS' (Royal Institution of Chartered Surveyors) organisation nearly all of the UK's major insurers will remove the Average Clause from your policy as long as you insure for the amount we recommend in our RCA report. Should a claim occur, you will also have a RICS based report immediately to hand, which will put you in an extremely strong position should you ever face a disputed insurance claim..
What happens next?
Your choice is simple. Do you want to risk the potentially severe consequences of insuring your business property for the wrong amount, or do you want the peace of mind and assurance our trusted service can provide?