Rebuilding Cost Valuations

John Knowlden, Director, KTIB

Recent research within the insurance industry has indicated that a large percentage of commercial properties may be under insured.*

Why have your buildings valued?

Should you be unfortunate enough to suffer a claim the amount paid to you by your insurer will be influenced by the figure which you choose to insure the premises for.

In the event of a partial loss any claims pay-out will reduce in direct proportion to the degree of under insurance. Similarly if you suffer a total loss the amount paid by insurers will be your sum insured. So, if your sum insured is lower than the actual rebuild cost, your claim payment won't be paid in full. This is called “Average”.

The solution

It is the owner's duty to make sure that their property is adequately insured. Neither insurers nor brokers provide you with a rebuilding cost valuation. We suggest that every 3 years you obtain a professional rebuilding cost valuation to ensure the adequacy of your sum insured.

This valuation report will help to ensure your buildings are adequately insured and avoid any potential under insurance issues in the event of loss.

*Post magazine online 7th Feb 2012

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