Insurance policies have a declared sum for any cover for buildings which should relate to the full rebuilding cost of your demised premises. This is not the same as the market value of the property which has no relation to the Insurance rebuild value. Most people get this wrong and this has massive implications on the claim settlement.
Our RICS Chartered Surveyors can produce VAR (Value At Risk) surveys to give an accurate sum to be insured.
This service is often re-sold by brokers. As you are aware it is the responsibility of the policyholder to provide a correct rebuilding cost, but is always the broker's fault in their eyes when it is inadequately insured!
A policyholder is often unable to estimate the full cost of demolition and rebuilding of their property. No two properties are equal. The rebuilding costs for every type of building will be different and varies depending on individual building types. Allowing for all aspects of a total loss is not easy and should be done by professionals. The benefit for a Broker is that the correct rebuilding costs usually equate to more premiums as most policyholders undervalue their properties and miss ancillary costs which they would be exposed to in the event of a claim.
Fencing & Boundary Walls
Hot & cold water
Doors and windows
Outbuildings & Sheds