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.

Thank you for all entering our competition. A P Barber of Worcester was the closest to the correct sum insured and therefore has won the Fortnums Hamper.

The correct building sum insured was £2,751,000 based on an external gross floor area of 1023m.

The winning answer valued the building at £2,750,000

The highest estimation was £12,000,000
The lowest estimation was £50,000

We hope you enjoyed the Game Fair and thank-you for entering our competition.

If the results have raised concerns about the sums insured on your property, do call us to discuss how BCH may help.

5. The building is green

Not the colour. We mean eco-friendly! Built from rammed earth, straw-bales, old car tyres and such like. If the construction method isn’t standard, you can’t expect the sums insured to be either.

6. The building has recently been altered

Extended, altered, refurbished. What about the sums insured? Did they get altered at the same time?

7. The building is in a funny location

Not funny ha ha. We mean there’s something a bit unusual about where it is. Like in a city centre adjacent to a railway line, or on a small island that’s only accessible via a weight restricted bridge. Imagine how these factors could complicate a rebuild. Complication equals cost. Cost means higher sums insured.

8. It’s more than 10 years since the building had a proper valuation

Benjamin Franklin said two things are certain in life, death and taxes. Well here’s something profound he didn’t say that’s also pretty certain – In time things change. Valuations need to be updated, or the chances are they’ll be wrong.

1. The building is listed

Buildings are listed because they’re of special architectural or historic interest. This means, if there’s a fire or other loss, special permission from the relevant planning authorities and agencies will be needed before rebuilding or repairs can take place. In other words, there’ll be a big fuss. Fuss tends to cost more.

2. The building is made of stone

So what’s so special about stone? Well, it costs more to build with stone. It costs more to repair and maintain stonework. And the stone may well be unique, having originally been sourced from a local quarry perhaps. Again, more hassle tends to mean more cost.

3. The building was constructed before 1920

Things aren’t built like they used to be. It’s true. Buildings from the past were built to last. And sorry for churning out another cliché, but you only get what you pay for. Better quality means higher costs, so older buildings are more likely to be under-insured.

4. The building has never had a proper valuation

If the sums insured are based on guess work, or they’ve been passed on by previous owners and you don’t know the source of the original valuation, then the chances are they’re wrong. Get them checked.