Within your council’s community, buildings are a vital asset which should not only be protected, but done so with proper care. In the world of insurance, this means taking the necessary steps to fully evaluate your assets and ensure your cover suits your specific requirements.
The scope of the problem
As explained in the following guidance from our insurer partner Ecclesiastical, “if you are under-insured, you run the risk of any claims payments following a loss being reduced in that same proportion and you may not be able to reinstate the premises. As an example, if your building is insured for half of the true cost of rebuilding, the claims payment may be half of the amount claimed.”
Alternatively, there is the risk of overinsurance; a case wherein, for example, you have more cover than necessary. This can result in higher premiums, meaning less funds for the care and support your council might need elsewhere.
How can this be avoided?
Fortunately, there are a number of ways in which such risks can be reduced. First and foremost, you should ensure that your property has been professionally valued for ‘insurance purposes’ with the last three years, and review this valuation if you have altered or extended the property.
When it comes to your cover, make sure that this has been based on the cost to rebuild your property, rather than market value, and be sure to factor the following costs in your calculations:
- gates/fences
- boundary and retaining walls
- car parking areas
- Potential increased costs if your property is a listed building i.e. time and cost of repairs/rebuilds are likely to be increased
- Professional fees such as an architect or surveyor
- VAT where appropriate is allowed for
- Site clearance or access, particularly where your property might need, for example, a crane or heavy plant to help with remedial work as a result of a claim.
Note: in the event of underinsurance the insurers can reduce the claims settlement on a pro-rata basis.
Need further help on building valuations? Speak to us today
We understand that no two councils are the same. To discuss your specific insurance requirements, contact the team via 0330 013 0036 or [email protected].
