Delaney Marling Partnership Limited have recently been involved in assisting a range of clients to establish the correct levels for the insurance of their properties, ranging from residential homes to Academy schools.
What would you do if the worst happens to your school or company premises?
After the situation is brought under control the insurance company will visit the site to establish the extent of damage that has occurred to determine their responsibility. If ultimately your property is found to be under-insured the likelihood is that you will receive a payment from the insurer for the sum insured which could be a long way short of the monies required to restore the premises back in to its original condition, manufacturing, providing educational or healthcare services, whatever the sector.
Can you or your company afford this to occur?
The main way to ensure that you have done everything you can to avoid this kind of situation occurring is to ensure that you have an up to date reinstatement valuation undertaken of the premises. This will provide a realistic day one estimate of the rebuilding costs of the building on which to establish the correct level of insurance required.
Until recently the process of calculating this rebuilding cost was to undertake a measured survey of the premises and with the application of a schedule of rates per m² for each type of building classification from office to classroom, a sum was determined. Following an increasing number of insurance claims falling short of the sum required to rebuild the insurance, regulators and the RICS have established a change in the rebuilding calculation. This method determines that an elemental view of the buildings is used to calculate the costs, from foundations to roof finishes and everything in between in order to obtain a realistic sum.
This level of service has been provided by Delaney Marling Partnership Limited to our clients on a regular basis.
Once an up to date valuation has been establish it is advisable to review this every three years to ensure the level of insurance is adequate.