Is your property fully insured for the correct replacement cost amount?
In the event of an insurable incident, will the insured amount you have advised your insurer actually cover the full extent of your financial loss?
Did you know that when an insurable event occurs; if the insurance company determines that the insured value of your property is “under-insured”; the amount of any insurance claim could be reduced by the proportion for which you were under-insured?
Wilde and Woollard can prepare and regularly update the insurance valuation for your property to help ensure that you are fully covered in the event of a loss, not just for the construction cost of your existing building, but for the full “replacement” cost of a new building as defined in your insurance policy.
Some items commonly left out of the full “replacement” cost of a building include:
- Demolition of existing
- New construction (to current code, fire, DDA requirements, etc)
- Consultant’s fees
- Project Management
- Construction cost escalation
Insurance valuations should be updated annually to reflect current construction cost escalation.
Wilde and Woollard recommend a full update of insurance valuations a minimum of once every three years or sooner during times where significant construction cost increases or decreases are occurring.
The indexing of insurance valuations for greater than three years runs the double risk of being either underinsured or over insured and paying more in premiums than necessary.
Insurance claims – In the event of a claim, Wilde and Woollard can assess the value of the damage to your property; providing you with your own independent assessment of costs to support negotiations with your insurance company.