It goes without saying that as an owner of a property it is essential that your asset is fully insured with an adequate level of cover for an appropriate sum. But what is an appropriate sum? This is not something that a lay person can readily assess but the implications of an inaccurate assessment are significant.
Over insure and you will pay excessive insurance premiums. This can be particularly significant for clients insuring medium to large portfolios of property or residential blocks.
More seriously, if you are under insured you run the risk of an insurance company limiting or even refusing to pay out on an insurance claim and leaving you in a perilous financial situation in the event of major damage.
Under insurance can occur when:
- Suitable advice is not taken at the outset of a policy;
- A policy has been in place for a number of years with no inflation factor or an inaccurate inflation factor applied upon renewal on a year to year basis;
- The alteration, refurbishment or extension of a property has not been taken into account.
For owners of individual dwellings or those with a duty to insure residential blocks, Peter Barry are able to assist in providing what is known as an Insurance Reinstatement Valuation. This is a calculation to provide a figure representing the cost to reinstate a property in the event of it being destroyed.
It is generally recommended that a Reinstatement Cost Assessment is updated every three years or more frequently if a property has been extended or altered. It is therefore important to have a periodic and professional assessment of your property to calculate a suitable sum.
This involves an inspection of the building to understand the age, accommodation and construction, taking measurements and running a calculation to industry standards.
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