Services
Rebuild Cost Assessment
The rebuild cost of your property is not the same as its market value. If your sum insured is too low, any claim you make may be reduced. We offer accurate rebuild cost valuations of your home or business by a Chartered Building Surveyor with extensive insurance experience. Call us for more information.
Service Overview
Why an Accurate Rebuild Cost Matters for Your Insurance
Many businesses and homeowners have been left out of pocket when they received their insurance claim payout because they were underinsured. Many property insurance policies include an average clause, which reduces the amount paid when a property is underinsured.
What it means, in plain language, is that the payment for any loss or damage will be in proportion to the value insured and the cost of replacing or rebuilding your property.
So if the cost of rebuilding your home or replacing your business asset is €200,000 and you were only insured for €100,000, you are underinsured by half. If you then suffer €50,000 of damage, you will only be paid €25,000, as the insurance company assumes that you were taking the risk yourself for the other 50% of the asset value. If the property is destroyed, the most you can be paid is the €100,000 sum insured.
In the case of a business, if you have underestimated the losses from a trade disruption, your insurance claim settlement may be insufficient to rebuild your business and start trading again.
When you take out an insurance policy, never underestimate the rebuilding cost of your property to lower your premiums. You will just receive a much smaller compensation in case of loss. This is particularly important for businesses. For a business, check that each section of the policy, including buildings, stock and business interruption, has a sum insured that reflects the real cost of a loss.
A small saving on your premium can leave you with a much smaller payout if your property is damaged.