What is a Rebuild Cost Assessment and why is it worth considering?
Within new research it is shown that the gap between UK property rebuild costs and the buildings insured amounts are continuing to widen.
Within the Rebuild Cost Assessments latest rebuild costing research, showing data for more than 29,000 rebuild valuations carried out recently, shows that 9 out of 10 buildings currently insured in the UK do not have the correct rebuild amount insured. Around 80% are underinsured and almost 15% are overinsured.
The average building is currently covered for roughly 63% of the actual rebuild value which has dropped from 66% in 2022 and 68% in 2021, proving that the gab is continuing to widen leaving the insured with inadequate cover if the property was required to be rebuilt.
Those buildings that have been overinsured are on average holding cover for around 122% of their true rebuild value, this figure is down from 133% shown in research data from 2022.
Following the Rebuild Cost Assessments current research it has highlighter for the first-time which types of buildings within the UK are more likely to be underinsured.
Showing that residential buildings are more likely to be underinsured at 82% when compared to the 80% showing for commercial properties. The data also shows that residential buildings are mostly only covered for 59% of their true reinstatement value, compared to 66% for commercial.
The research recently carried out also indicates that sports and recreation centres are the most likely to be underinsured, narrowly followed by hospices, licensed premises and hotels, nursing or care homes and golf clubhouses.
A member of the Rebuild Cost Assessment team, Ewan Sandison, said: “While the worst of construction inflation may be over, it remains a significant factor. It’s no real surprise that the rebuild cost gap has continued to grow. There’s still a lot of work to be done to help people insure their buildings for the right amount.
“What is particularly concerning is the type of properties that feature in our ‘top ten most likely to be underinsured’. Hospices, care homes and nursery schools all provide essential social care services and as we can see are particularly at risk from underinsurance.”
Ewan added: “We need to ensure that in the event of a fire, flood or any other kind of insurable incident, all homes, businesses and vital facilities can bounce back quickly and achieve a positive outcome. Underinsurance remains a significant issue.”
Further information regarding the research recently carried out can be found within the link below. Our team here at Ladbrook would also be more than happy to discuss this with our clients or prospective clients and support in evaluating and assessing the insurance needs of properties to work towards this becoming a less common issue.
Please contact us via email or telephone if you do require any further support within this matter.
Email – info@ladbrook.co.uk
Telephone – 01909565858
