According to Ecclesiastical claims data, escape of water is the second largest cause of property insurance claims. Water leaks that go unchecked can cause thousands of pounds worth of damage and properties can take months to dry out before repairs can be completed. You may, therefore, need to relocate to alternative premises in order to continue to operate. As insurers, we have seen incidents where a small water leak has quickly escalated into a much larger loss. Whilst your insurance policy may provide cover should an insured loss occur, it cannot compensate for the inconvenience and … [Read more...]
What is Indexation and how does it impact your insurance?
There are several factors that now make indexation more important than ever. One factor is the significant rise in demand for building materials, and disruption to the global supply chain caused by the pandemic and national lockdowns. Certain elements of Brexit and local shortages of suitable labour are also affecting rebuilding and claims costs. How does index linking work? At each renewal of a policy, Insurers adjust the property sum insured, either by applying a flat rate of increase, or having tracked indices of property value. These are usually calculated from data provided by … [Read more...]
Underinsurance ‘made worse’ by rising construction costs
A sustained rise in construction costs this year is increasing the likelihood of significant underinsurance of buildings in the UK. Recent data from RebuildCostASSESSMENT.com has highlighted how on average, buildings are covered for just 68% of the amount they should be in Britain. However, with rebuild costs rising rapidly, the current situation is likely to be even worse. According to the Builders Merchants Federation (BMF), prices have risen by between 10% and 15% for products and materials this year. However, some products, such as timber, have seen prices go up by 50% and by as much as … [Read more...]
Rebuild Cost Assessment
Protect your organisation from underinsurance Buildings should always be insured for the amount it would cost to rebuild them. However, fewer than one in ten commercial properties in the UK are covered correctly. If you are over-insured you are probably paying too much for your buildings insurance. If you are under-insured, you face a reduced pay out in the event of a claim. Insurance claims can be reduced by hundreds of thousands of pounds due to under-insurance. Watch this short video to see why being underinsured can be a … [Read more...]