In the event of a structure needing to be rebuilt, it is essential that the amount the insurance companies pay out adequately covers these costs. Of course, this can only be done if the building’s sum insured is accurate and up to date.
As insurance companies realise that far more precise sum insured valuations are required to accurately assess their risk, they are putting more pressure on brokers to obtain accurate information.
And when faced with a three month waiting period to receive an accurate sum insured valuation, many brokers are faced with a seemingly impossible situation.
However, this doesn’t have to be the case.
In this article, we’ll be looking at the impacts of these pressures on brokers and how to avoid the consequences of rushed and inaccurate sum insured valuations.
What is Causing Underinsurance
Based on reports from The Treasury, found that 85% of homeowners surveyed are underinsured to the tune of 25% to 50%.
There may be several reasons for this:
- Time pressure on the broker’s end to update policy renewals;
- unfit-for-purpose methods used to determine values;
- clients’ reluctance to update their sum insured for fear of large premium increases;
- and, unfortunately, sometimes a client’s good old ‘she’ll be right’ mentality.
The bottom line is that if your client has opted to use the online calculator, without an in-depth sum insured valuation by a qualified quantity surveyor, it is almost always going to be insufficient.
Sum Insured Valuations Don’t Need to Take Months
The problem is that many valuations can take up to two to three months to complete – often way longer than can be afforded. Panic sets in. It’s understandable, perhaps, that the industry has seen more than its fair share of (inaccurate) online calculated or rolled-over valuations.
Though property valuers are experts in market value and rental assessments, they may not always possess the specific expertise to accurately estimate rebuilding costs, but they don’t know what it costs to rebuild. The discrepancy in this cost and the sum insured suggested by someone who does not fully understand the construction industry may have dire consequences.
The good news, however, is that sum-insured valuations done by qualified quantity surveyors don’t need to take months.
Accurate Sum Insured Valuations in 20 Days
Truth be told, the need to rebuild is going to be strenuous for your client, no matter what. But make sure that as their broker, you shine as the person who got them sufficiently covered in the first place AND can efficiently get it all sorted now.
A rebuild valuation, done by a qualified quantity surveyor (not just an online calculator or valuer), is the only way to ensure an accurate sum insured figure for your clients’ residential or commercial insurance policies.
At Construction Cost Consultants, our qualified quantity surveyors have specialised knowledge of all the costs involved in a rebuild, from demolition of the old to completion of the new building.
Our years of industry experience, knowledge, and custom-designed software allow us to give detailed breakdowns of all costs, resulting in the most accurate sum insured valuation possible. Your clients and the insurance companies can have confidence that should the worst happen, there will be adequate coverage. And importantly, you, as their broker, can sleep well at night knowing that you have done your due diligence.
Good things take time, though, right? But they certainly shouldn’t be taking months. Our national footprint, qualified quantity surveyors, and world-class technology mean that our whole process – from site visit to final report – only takes up 20 days.
Get in touch with our team to discuss how Construction Cost Consultants can help you quickly provide the most accurate sum insured valuations for your clients’ properties.
If you’d like to receive direct industry updates, make sure to subscribe to our monthly insights here.
