All property owners should ensure that the structure of their property is adequately insured to ensure it can be re-built, for example, in the event of fire or any other catastrophe. The majority of lenders require that adequate reinstatement insurance is maintained as a condition of their loan.
It is recommended that insurance valuations are updated every three years for commercial property because the risks of inappropriate insurance are high. Costs of materials and labour can change greatly in this period leaving your insurance undervalued.
Accurate insurance is required as most insurance companies apply the principle of ‘averaging’ to claims where insurance has been undervalued. This means that if your building is under insured by 20% all claims will be reduced by 20%. Equally, if a property is under insured the shortfall between the actual reinstatement cost and the building reinstatement insurance value will need to be funded by the property owner.
- We offer full Building Insurance Reinstatement valuations which are carried out in accordance with RICS Guidelines by our team of surveyors.
- We are of course pleased to tailor our service to any specific requirements that your insurance company may require.