Last year we wrote about the need to keep building insurance declared values up to date. Following a loss, if buildings are underinsured you may receive much less than you expected due to underinsurance penalties (average) being applied.
According to government figures, building material prices were 25% higher in 2022 than they were in 2021. Building Materials and Components Statistics show that the average annual building materials prices for 2022 were 54.4% higher than in 2015, and increased 25% from 2021. These figures do not include the price of labour.
Rising raw material and shipping costs are continuing to pose a problem to many businesses, big and small, regardless of sector.
The prices of many raw materials dropped drastically during the pandemic as the world came to an almost global standstill. While these costs have now stabilised, the ongoing invasion of Ukraine as well as the lasting impact of Brexit will continue to make the future prices of raw material costs uncertain and subject to further upward pressure.
Bear in mind that buying in replacement machinery and shipping it to site, costs of your production materials and finished goods (or landed) stock will have risen considerably in the last few years and needs to be reflected in the values you insure.
This is particularly true of successful growing businesses who as they expand can sometimes forget to tell their broker that their sums insured need to go up.
We always advise our clients to keep their insurance policy up to date and always advise us of any changes in machinery, plant and stock so we can ensure your insurance policy is updated.
Vista can help you avoid financial damages from underinsured buildings, stock and more by carrying out detailed valuations on your assets.
We work with a number of partners to deliver a range of valuation packages:-
Our bronze package is ideal for simple, non-listed buildings where aerial imagery and interactive panoramas are available to supplement ordinance survey mapping and basic information taken from a client questionnaire. This type of valuation is estimated to be around 80% accurate when pricing up the value of buildings and inventory.
Our silver valuations are the perfect hybrid, a desktop service with direct client interaction, this can include historic buildings up to £10 million. Using a video cloud platform, we initiate a virtual interactive survey with added information and images provided by the client. We estimate these valuations are 90% accurate.
Our Gold valuations for as close to 100% accuracy in evaluating your assets. This involves a site visit service when the available images and maps are not detailed enough, or the building is complex and merits an in-person inspection.
As well as building valuations, we also offer services to get machinery and industrial/manufacturing plants valued ensuring no part of your business is ever without cover.
To find out more about how we can help protect your assets against underinsurance, get in touch with us on 0161 393 7111.
