Is your client underinsured?
With raw material prices increasing and inflation on the rise, it’s important to remind clients about the very real cost of under insurance. Rebuild costs have increased over the last 18-24 months – brought about by a combination of Covid-19 and Brexit – rebuild costs have inevitably gone up.
We recently highlighted the impact of underinsurance for contents, including collectables as well as jewellery but not much is said for underinsurance for buildings themselves.
A recent report from the Central Bank of Ireland stated that paid claims that are under insured has increased to 16.5% in 2021, up from 6.5% in 2017. This is due to much higher rebuilding costs that most people have not factored into their insurance cover.
What can your client do to review the buildings insurance to avoid underinsurance:
We urge you to contact you clients to double check their insurance cover and make sure that they have adequate insurance cover for their properties.
Whilst reviewing you clients buildings sums insured, you should also take the following into account:
- Listed Status – consideration must be given to the increased length of time taken at the planning stage to ensure the repair/rebuild meets with planning authority requirements.
- Professional fees – not considering architectural or survey costs could leave you with a significant shortfall.
- Outbuildings – taking onto consider rebuilding costs for any outbuildings
If you are in any doubt about whether your buildings sum insured is too low, then contact us and we can talk you through the process of a property survey. Markham works closely with companies like Scott Brown Risk Management to carry out a property risk assessment www.sbrms.com
Should you have any concerns over the risk on underinsurance please contact the Markham team.