Property Rebuild Insurance and why it is important to have a Rebuild Cost Assessment

Many charities and not for profit organisations do not realise the costs that are involved if a property needed to be rebuilt. This can come about for many reasons, such as fire, vandalism, extreme weather and many more. But it is the property owners’ responsibility to have the appropriate insurance if this was to happen.

As stated above, many do not realise the costs that are involved if a property needed to be rebuilt. Not only this but many do not know the difference between the market value/resale value opposed to a rebuild value. This may sound like it would be the same, but it is not. There would be potentially unexpected cost when it comes to rebuilding a property, such as demolition and removal fees along with other aspects that may be salvageable from whatever incident occurred and some that may not be. The rebuild of a property is usually significantly lower than the purchase price or market value and will include labour and material costing.

At Ladbrook we recommend a ‘Rebuild Cost Assessment’ to be carried out when our insured are property owners. This assessment is carried out by an independent company who have trained and knowledgeable assessors that not only can ensure the property is insured for the correct rebuild amount but also can shed light on areas that as a property owner may not have considered previously. We recommend the assessment to be completed every 3 to 5 years to keep up to date with inflation and cost of materials and works.

Being conscious in this aspect of your insurance is important. Insurers use the term ‘Average Clause’, which in effect ensures you only get from them what you pay for. If the amount you insure your building for is too low, then the Average Clause can significantly reduce how much you can claim. If you insure too high, you end up paying your insurer too much in your annual premium. Mainly considering our clients which are all charities, non profit organisations, social enterprises or the like, this would hugely affect the important work that they do for their communities and beyond.

If your charity, not for profit organisation or community group owns any property or are considering buying property and you would like any further information, please contact us and one of our dedicated account handlers would be happy to support in this.

There is also more information on the website below;

https://www.rebuildcostassessment.com

Please note, Ladbrook do not charge any fee for completing this on a client’s behalf and this would be included within our service.