Over the last few years, we’ve seen that change can happen overnight. We’ve experienced complications arising from Brexit, Covid-19, the war in Ukraine and most recently, the Cost of Living Crisis which have pushed many businesses into completely changing the way they provide services and trade. But what has all this got to do with underinsurance?
Is your property protected for the right amount?
If you don’t declare the right property rebuilding cost or if you haven’t had your property professionally valued for insurance purposes, you may find that you are drastically underinsured should something go wrong.
Once the damage is done, it may be too late, and you will need to subsidise any shortfall from your pocket. Consider the following factors, all of these are costs which have dramatically risen over the past few years due to circumstances such as Brexit and Covid-19:
- Increased labour costs and wage inflation
With fewer qualified tradespeople available, wages have risen by approximately 10% as builders compete to employ staff - Materials cost increases
The average price of building materials have risen by 10% between March and June 2022 - Materials supply shortages (including stock, machinery and plant)
Timber and plaster shortages continue to affect supply chains, delaying construction projects - Inflation increases
Recently, inflation has risen at its fastest rate in 30 years. Due to the uncertainty around inflation and pricing, some suppliers will now only hold their quotes for 24 hours
Have you reviewed your property sums insured recently to take these factors into account?
How to avoid underinsurance
As well as reviewing your buildings insurance annually, it’s important to review your insurance any time you make a significant change such as a renovation or, for commercial buildings, during times of peak stock levels.
The Chartered brokers at Hine work with RebuildCostAssessment.com to provide you with an accurate valuation of your property, at a discounted rate. To find out more, just give us a call on 0161 438 0000.
