We have recently advertised highlighting our building surveying services we specifically provide in connection with commercial building reinstatement works following fire, flood and other building damage culminating in an insurance claim.
There is another building insurance related service we provide which is often overlooked or not given the full attention it deserves by commercial building owners, that is building reinstatement cost assessments. This is when, we as Chartered Building Surveyors assess the cost for insurance purposes to fully reinstate a commercial property and its environs following a hypothetical total loss to ensure the site is neither under or over-insured in light of all known circumstances at the time of assessment.
Having an under or over insured property will have costly implications for the property owner, but rather than provide a lengthy synopsis about our building reinstatement cost assessment service, I suggest commercial property owners ask themselves the following questions listed in no particular order, regarding their current building insurance arrangements.
- Are you familiar with ‘condition of average’ clauses used by insurance companies?
- Has your building(s) undergone any building works or other ‘material changes’ that have not been notified to your insurer?
- Is your building listed or of special architectural and / or construction merit?
- When did you last commission a building reinstatement cost assessment for insurance purposes?
- Is your building reinstatement cost reassessed on an annual basis? ie. index linked?
- Does your building reinstatement cost assessment include for all demolition, professional and statutory fee costs?
- How has your current building reinstatement cost been assessed? ie. desktop, site survey or not known?
- Are you aware of guidance given by the Royal Institution of Chartered Surveyors (RICS) which recommends the sum insured should be subject to a major review and reassessment every 3 years, or earlier should significant alterations be made to the insured property.
- Are you satisfied that your current building insurance cover accurately reflects significant building material and labour inflationary cost increases experienced over the last 12 months?
If any of the above queries raise concerns or doubts regarding your buildings insurance cover, then please do not hesitate to email or call me to discuss further.
Director