12 simple ways to spot an under-insured building (part 3)
9. The property has been ‘souped-up’
Bling means ching ching in the till! Any property (commercial or residential) that is oozing quality fixtures, fittings and finishes will have a price tag to match.
10. The building has extensive external features
Clients think about their main building but they don’t always remember the car parking, garages, store sheds, boundary walls, gates, leisure facilities, driveways, paving, drainage, lighting etc. which all are included within the definition of buildings.
11. The value has been based on a developers’ costs
Developers keep costs to a minimum by using their own team of consultants and contractors. By constructing en mass, savings are achieved that would not be available in an insurance claims scenario. We also have to take into account the additional costs of demolitions and fees.
And lastly … we didn’t think we would have to say this but it appears that it does need mentioning …
12. The building sum insured has been based on market value
The market value is the market value. There is absolutely no correlation between the market value and the building sum insured; never has been and never will be! The two are often significantly different and either one can be far higher or lower than the other depending on the location and quality of the building.