Posted on March 31, 2016
Quite a scary statistic isn’t it?
This was just one fact highlighted by Quadra Claims Services Ltd.
Quadra visited our offices recently to provide an update for all Pii staff on the statistics around the correct assessment of rebuilding values for insurance purposes. They also confirmed that 40% of UK properties have inadequate Business Interruption cover.
Our last insight piece from Gemma dealt with the average clause. In the event of underinsurance this would mean that a policy holder would only be covered for the value of the sum insured on the policy and not the full value of the loss. The shortfall between the claim payment and the actual loss can be significant – especially when Business Interruption insurance is included in the equation.
To put this in context, insured losses in the UK in 2014 amounted to £500m. Within the same timeframe there were £130m of uninsured losses. (Source, the Knowledge, The Insurance Times).
Insurers recommend that buildings are re-valued for insurance purposes every 3-5 years. Many leases make provision for the cost of such revaluations to be passed on to tenants via a service charge.
Looking at the statistics above it makes good business sense for landlords to consider a revaluation programme for their properties in order that there are no nasty surprises in the event of a claim.