\t\t\t\tIf you\u2019ve ever insured a property, you\u2019ll know that arranging buildings insurance is based not just on your property\u2019s \u2018market value\u2019 \u2013 the amount it would sell for today \u2013 but also its \u2018rebuild costs\u2019.\u00a0 This refers to the amount of money it would cost to rebuild or reinstate your property from scratch, if it was completely destroyed by an insured peril.<\/p>\n
Insurer Zurich has warned that some landlords are leaving their properties \u2013 and finances \u2013 exposed by incorrectly valuing these full rebuilding costs \u2026and it\u2019s complacency that\u2019s to blame.<\/p>\n
The financial crisis and subsequently sluggish economy may have lulled landlords into a false sense of security, warns Jonathon Scotcher, Underwriting Manager for Real Estate at Zurich.<\/p>\n
\u201cPeople are fairly relaxed about valuations at the moment because rebuilding index values over the last few years have gone in relatively fairly small steps,\u201d he said.<\/p>\n
Your insurer will only pay out the amount you have insured the building for \u2013 so if you wrongly estimate the sums insured, and your property needs extensive rebuild work, you would not receive a big enough payout. Smaller claims will also be reduced by the percentage your building is deemed underinsured by.<\/p>\n
Whether you own residential or commercial properties, it\u2019s important to get the calculations right. Here are some top tips for getting your rebuild value sums correct:<\/p>\n
It\u2019s not just the size of your building which dictates its rebuild cost. Though this will impact the amount of materials used, you also need to consider what they are \u2013 is it constructed from any specific or unusual materials? Also consider the building\u2019s style, quality and location. Don\u2019t forget to include the cost of labour, which will depend on the size of the project and how long it would take to rebuild from scratch.<\/li>\n<\/ul>\n
<\/p>\n
Recent changes in UK building regulations and stricter environmental laws may well mean your buildings would cost more to rebuild today than when you first insured them. Other geographical factors also make a difference \u2013 rebuilding costs will differ in the north from in the south, for example.<\/li>\n<\/ul>\n
<\/p>\n
Listed buildings, landmark buildings and those otherwise \u2018outside the norm\u2019 would need the attention of specialist construction workers and therefore need to be assessed on-site by experienced valuers.<\/li>\n<\/ul>\n
<\/p>\n
No matter the type of building you own or what it\u2019s used for, an assessment by a professional surveyor is the most accurate way to arrive at a sums insured. This gives you the peace of mind that your insurance would provide the total rebuild cost if it was ever necessary. You should also revalue your buildings at regular intervals.<\/li>\n<\/ul>\n
<\/p>\n
We strongly recommend seeking a professional valuation for your property to make sure that it is not under-insured, but if you have any other queries on this topic, please don’t hesitate to contact a member of our team on 01564 730 900.\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"
If you\u2019ve ever insured a property, you\u2019ll know that arranging buildings insurance is based not just on your property\u2019s \u2018market value\u2019 \u2013 the amount it would sell for today \u2013 but also its \u2018rebuild costs\u2019.\u00a0 This refers to the amount of money it would cost to rebuild or reinstate your property from scratch, if it […]<\/p>\n","protected":false},"author":7,"featured_media":2977,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[186,187],"tags":[212,310,344,345,346,347],"acf":{"related_articles":null},"_links":{"self":[{"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/wp\/v2\/posts\/2973"}],"collection":[{"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/wp\/v2\/comments?post=2973"}],"version-history":[{"count":0,"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/wp\/v2\/posts\/2973\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/wp\/v2\/media\/2977"}],"wp:attachment":[{"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/wp\/v2\/media?parent=2973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/wp\/v2\/categories?post=2973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/wp\/v2\/tags?post=2973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}