The Insurance Act (2015) comes into effect on 12th August 2016. The Act requires ‘fair presentation’ of the risk, part of which includes the sum insured on the policy. At the time of claim if it is discovered that the value has been deliberately or even inadvertently set too low, that claim may be reduced proportionately.
It is a well documented fact, that on average 77% of the properties correctly surveyed are discovered to be underinsured by 45% of the correct insurance value for the purpose of reinstatement.
The sum insured should be reviewed every 3 – 4 years as indexing applied by insurance companies can become out of time with current construction cost trends. Over insurance can result in paying too high a premium, under insurance could result in having to meet the cost of any shortfall in the reinstatement works. Any business owner will appreciate that lack of adequate cover could leave a business with serious funding issues and potentially disastrous delays.
We have extensive experience of preparing RCAs for all types of property. Whether as individual or a portfolio of 50+ sites, we have assessed almost every type of building, modern or listed, including offices, shops, retail parks, warehouses, storage, manufacturing and industrial facilities, retirement homes, blocks of flats, bridges, carparks, hotels and pubs, with a range of values circa £50K – £100m ++.
QuanTec have accurately assessed in excess of £8 Billion of commercial property portfolio since our formation.
Factors and considerations that will influence Building Reinstatement Costs:
• Conservation Areas
• Listed Buildings
• Regional cost variations
• Access and site constraints
• Construction methods and age
• Adjoining properties and Party Walls
• Tenant fit out items
• Plant and Machinery