How Can Valuations Help to Avoid Underinsurance?

It’s important that businesses understand the true cost of important assets, whether it’s the cost of rebuilding a property or the cost of replacing important plant and machinery.

It is estimated by the Building Cost Information service that underinsurance in UK commercial property could be as high as 80%.

In addition, businesses can often under estimate the cost to replace and reinstate plant and machinery which can often be higher than the original purchase price depending on market fluctuations and stock levels, a good example being exchange rate fluctuations following Brexit which may mean that imported machinery is much more expensive.

This level of underinsurance can mean that if a business suffers a significant loss it’s ability to quickly bounce back can be severely hampered.

How can your business avoid underinsurance?

Valuations are key. A professional valuation can ensure that your key assets are correctly insured to avoid underinsurance.

Wilby can arrange low cost desktop Royal Institute of Chartered Surveyors (RICS) assessments or full on-site rebuild cost assessments of your buildings, to ensure your assets are insured adequately.

In a recent example a customer found that as a property owner with a buildings sum insured of £2.75m there was a shortfall in excess of 30% on the reinstatement sum insured.  By increasing the sum insured immediately any potential future issues with claims settlement were avoided.

Prices start from £125 + VAT for a RICS desktop valuation. More comprehensive reports at competitive rates available, ask your Wilby contact for details or call email us for more information.

Making sure you have the right cover in place is at the heart of what we do, click here to find out more about the Wilby Broking Service