It is critical for you as a business to ensure the sum insured for buildings represents the full rebuilding cost of the property and not just the current market value. When considering the rebuild cost you should look to consider: the cost of materials, current labour costs, associated fees such as those for surveyors and architects, costs involved with the clearing of the site.
Building sums insured should also include, but not be limited to, the following if you as the insured party have responsibility for them these include but are not limited to:
• tenants’ improvements
• landlord’s fixtures and fittings,
• walls, gates and fences,
• small outside buildings, annexes, gangways, conveniences and other small structures,
• extensions communicating with the buildings,
• roads, car parks, yards, paved areas, pavements and footpaths security cameras and lights
• fixed fuel oil tanks and fixed diesel tanks, piping, ducting, cables
• wires and associated control gears and accessories and extending to the public mains.
Great consideration should be given also to the type of construction as well as the method of construction necessary to rebuild the property. You may find for example, that if the property is a listed building that the cost of materials needed is greater along with the time and labour required to rebuild the property.
Getting a recent professional valuation for insurance purposes is recommended as this will provide an accurate assessment of the rebuild costs. Under insurance is prevalent and is most commonly found in buildings policy covers, so it’s important that you have the correct sums insured so that your business is fully protected in the event of a loss or damage.
The Insurance Act 2015
Importance of getting your sums right
Calculate Business Interruption Insurance
Calculate sum of buildings cover
Calculate stock and contents
How much are your business equipment, Plant and tools really worth?