Property insurance is based on the reinstatement cost of the property. This is the amount it would cost to completely rebuild the property from scratch if it was totally destroyed, by fire, for example. It includes the costs of clearing the site, materials, labour and professional fees…
Adler Fairways has seen a marked increase in the use of reinstatement valuations for insurance purposes, as owners of both commercial and residential properties seek the certainty and reassurance they provide. We work with a specialist reinstatement valuer to provide these assessments.
The cost of rebuilding your premises or replacing equipment after a major incident can be more than you think. Worryingly, a survey by valuer Barrett Corp & Harrington revealed that 81% of properties across the UK are only insured for 61% of their actual value. These buildings are usually insured for their market value, when they should in fact be insured for the cost to rebuild the property.
Most assessments require an on-site inspection to note the building materials, take measurements and evaluate specific location factors. However, it may be possible to prepare a desk-based review using data from the web and information provided by the property owner.
Main policy features *
Being underinsured can affect a number of parties:
Commercial – Company Directors can be sued by shareholders. It can also lead to businesses going under and employees losing jobs. Reinstatement assessments can be used to value all types of commercial buildings including factories, warehouses, industrial units, office, shops, hotels, farms and estates, historic and listed buildings.
Blocks of Flats – We can arrange reinstatement assessments for anything from individual blocks of flats to large portfolios. In the event of a claim, being correctly insured enables all to focus on rebuilding people’s homes as quickly as possible. As managing agents or portfolio owners you do not want to have to face questions about underinsurance and your professional advice.
Private Homes – If you live in a large house, one which has undergone several extensions or expensive refurbishment, is listed or constructed of materials other than brick, you could well be underinsured. Owners may have guessed the rebuilding costs based on market value, or relied on an inappropriate mortgage valuation. If you need to claim and are underinsured, the financial impact can be catastrophic.
Risk Assessments – Our reinstatement valuer provides risk surveys for high net worth clients, and in the main, are intended for larger, unique homes. These surveys can cover an assessment of reinstatement costs, security, and fire protection as well as a review of the current level of general contents cover and commentary on storm, flood and subsidence risk.
* This information is a general guide only. Adler Fairways will assess your requirements and recommend a bespoke range of insurance solutions to meet your needs. As part of the quotation process, we will provide full details of the specific coverage, benefits, limits, premiums, exclusions, excesses payable, and any other policy conditions that would apply to the insurance we recommend for you. We currently only offer cover to businesses registered in England, Scotland, Wales, Northern Ireland, the Channel Islands and the Isle of Man.