Property & Asset Insurance Valuation (Buildings & Machinery)
Why Take The Risk of Under-Insurance?
It’s estimated that, on average 77% of the properties surveyed are underinsured by 45% of the correct insurance. (Source: www.bch.uk.com)
So, in the event of a claim, insurers will proportionally reduce that claim by the amount of the under-insurance.
Quite often property owners insure their buildings on the basis of market value. However, the insurance amount should be based on the total rebuild cost, including allowance for current building regulations, demolitions, debris removal and fees. Even if a building is believed to be insured on the correct basis, it should be regularly reviewed, especially when legislative and governmental changes can have such an impact (the last VAT increase was one such example).
If a building is found to be underinsured, the Condition of Average may apply and the amount payable reduced in proportion to the degree of underinsurance – in short, there may be insufficient funds to reinstate.
In all, the entire process can be complex and requires expert knowledge to get absolutely right.
Russell Scanlan has partnered with Barrett Corp Harrington (BCH), a dedicated provider of buildings insurance valuations, to provide a cost-effective insurance reinstatement valuation service. BCH values all types of commercial and residential buildings for insurance purposes, no matter how large or small; including property portfolios and historic and listed buildings.
Accurately assessing the correct insurance valuation for assets such as machinery and plant equipment can be a daunting task.
Should we insure on a replacement value or second-hand value? is a question we are often asked. There is no simple answer other than ensuring that the sum insured is adequate to reflect the basis of the settlement requested.
Russell Scanlan has partnered with Charterfields, international asset consultants and chartered surveyors, to provide bespoke valuation and asset management services. Through Russell Scanlan, Charterfields will offer a FREE valuation health check of your assets including production and manufacturing machinery and equipment sum insured. The report will provide you with initial indicators of under or over insurance together with recommendations.
Charterfields will also provide a more detailed formal valuation report at a preferential rate to clients of Russell Scanlan which provides an accurate valuation of your manufacturing machinery and equipment on whatever basis of settlement you require.