Paying too much for your buildings insurance? You could be!
Insurers often base their estimate reinstatement cost upon a square metre rate for building works which could be wholly inappropriate for the building in question.
For basic “shell” structures excessive items could be included within the rate which are not required. By commissioning a Building Reinstatement Cost Assessment the true value of replacing the building can be ascertained. A figure lower than the standard value applied by the insurance company could reduce your premium.
Conversely, you could be leaving yourself open to significant risk:
If there are high quality fixtures fittings and finishes an owner might find themselves vastly under-insured. In the event of a claim the insurer will compare the insured value to the actual reinstatement cost and make a settlement on a pro-rata percentage basis. Therefore in order to safeguard your asset it would be prudent to have a Building Reinstatement Cost Assessment provided upon purchase and then at reasonable intervals during ownership/occupation. The reinstatement cost will fluctuate over time as building costs vary and the accommodation, facilities and installations of the property are altered.
Anderton Gables have access to the latest official cost data which enable us to provide an accurate and up to date report on the reconstruction value of any built asset.
The total cost will need to include demolition, statutory fees and professional fees associated with the works required assuming a full loss of the existing buildings.
Vince Rimmer, Chartered Building Surveyor – Anderton Gables