News Article

Don't risk losing thousands of pounds by underinsuring your business premises

When did you last check out how much it would cost to rebuild all or part of your business premises?

Did you know that a recent survey has found that most commercial properties are not insured for the right amount in the UK?

More than 84% of properties are either underinsured or insured for too much. The same survey found that many business owners have insured properties on the basis of ‘market value’.

The rebuild cost of your premises isn’t the amount you paid for it, or it’s current market value. It’s the amount of money you would need to rebuild it from scratch if it was damaged beyond repair.

Even if the rebuild cost was originally calculated correctly, this could have been some years ago when the insurance cover was placed. The price rise in the costs of building materials, that we are seeing now, make it important to check how close your buildings sum insured is to the actual amount you would be likely to have to pay to rebuild your property, not forgetting the costs for the demolition and site clearance of your old premises.  

In the current climate you will find that the costs of the materials, surveyors, architects and labour required to rebuild your property have increased significantly. The cost of steel and timber has risen by over 70% in the last few months and even the cost of paint has gone up by nearly a third.

With price rises expected to affect construction well into 2022 we strongly recommend that you recalculate your business’ property rebuild costs – or obtain a professional valuation – sooner rather than later and keep it regularly under review.

Doing this now and getting your figures in order could prevent heartache at a later date.

Get in touch with Nigel Kennedy on 07951 120328 regarding how to obtain a rebuild cost valuation of your business premises or general advice about your business or fleet insurances.

 

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