If your building has not been valued for insurance purposes for some time, you could find yourself in the position of being significantly under or over insured, both of which can have serious financial implications.
From 2007 to 2011, BCH looked at properties for Aviva customers –
a staggering 86% were found to be underinsured by an average increase of 65% of their true declared value.
To help counteract under-insurance and make it easier for property owners to ensure they have the correct level of cover in place, Adler Insurance has a partnered with Barrett Corp Harrington(BCH) to provide accurate reinstatement cost assessments for both commercial and residential property.
As a leading supplier in this field, BCH have experience working with countless managing agents, property owners and managers across the UK. BCH value all types of commercial and residential buildings for insurance purposes, no matter how large or small; including property portfolios, historic and listed buildings.They are Regulated by RICS and the leading and preferred supplier of reinstatement cost assessments to the UK insurance market. Our partnership enables us to offer a preferential fee scale for valuations to Adler Insurance customers.
Why take the risk of underinsurance?
Quite often property owners insure their buildings on the basis of market value. However, the insurance amount should be based on the total rebuild cost, including allowance for current building regulations, demolitions, debris removal and fees. Even if a building is believed to be insured on the correct basis, it should be regularly revised, especially when legislative and governmental changes can have such an impact (VAT increase was one such example). Although tender prices have reduced during the recession, cost prices to contractors has continued to increase – and will affect the valuation.
In the event of a claim, if a building is found to be underinsured, the Condition of Average may apply and the amount payable reduced in proportion to the degree of underinsurance – in short, there may be insufficient funds to reinstate.