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One of the most common issues we see in commercial and residential property insurance is inaccurate rebuild sums insured. The problem isn’t usually deliberate — it’s simply that property owners don’t always understand how rebuild costs are calculated, or when a more detailed assessment is required.
A key question is: Should you rely on a desktop rebuild cost assessment — or is a site visit necessary?
Rather than duplicate an excellent technical explanation read the full article here from www.rebuildcostassessment.com
Your buildings insurance is only as strong as the sum insured declared.
If the rebuild cost is understated, insurers may apply the Average Clause, reducing a claim payment proportionately.
If it’s overstated, you may be paying more premium than necessary.
Neither outcome is ideal.
With construction inflation, labour costs and regulatory changes continuing to impact rebuild values, figures calculated several years ago may no longer be adequate.
Without going into technical detail:
Both have their place — the right choice depends on the building type, age, construction and complexity.
For standard, modern properties, desktop can often be appropriate.
For older, altered, listed or complex buildings, a site visit may provide greater certainty.
The linked article above explains this in more detail.
We generally suggest reviewing:
If you’re unsure, that’s usually a sign it’s worth checking.
As we enter our 100th year of independent broking, one of our key priorities is helping clients avoid preventable claims issues.
Rebuild cost accuracy is one of the simplest — and most overlooked — areas of risk management.
If you would like us to review your current buildings sum insured or discuss whether a desktop or site assessment may be appropriate, our team is happy to help.
