So, we’ve arranged with a national Quantity Surveying firm to provide expert rebuilding cost reports from $660 for homes and small commercial properties in major cities. Valuations can also be arranged for Plant & Equipment.
The insurance rebuilding valuation report can then be given to your insurance adviser and insurer to ensure the right level of cover is in place, giving you peace of mind.
Benefit – Right amount of Cover & Peace of Mind
The insurance rebuilding valuation report is prepared by MCG Quantity Surveyors, a licenced professional firm that is an expert in construction costs.
The report will state the amount to rebuild or replace the premises, taking into account the latest building codes, location, construction type and cost of removal of debris.
We will then ensure the right amount of cover, based on the actual cost to rebuild or replace your home, commercial building or investment property.
Under-insurance and impact on Claim payments
What happens if the insurance cover or sum insured is not enough to rebuild?
All property insurance policies, including farm, business, home and strata insurance policies, require the sum insured (declared value) when taking out insurance or renewing the policy to be the current cost of replacing the building, home, shop or factory.
Not having enough cover to rebuild or undertake major repairs can cause major delays to repairs or rebuilding, as well as have serious financial consequences.
For example, a factory and contents are insured for $700,000, however the rebuilding value is found to be $1 Million at the time of the fire. In this case, the insurer is likely to apply an underinsurance (also known as an average) clause, which all property policies include.
Not only would this likely delay repairs or rebuilding, but the claim settlement would also only be $612,500 (in this example), leaving a large shortfall in the $1 Million rebuilding costs.
As property rebuilding costs change, so should the amount of your insurance cover.
Contact Lewis Insurance Services on 07 3217 9015 or send us an email by clicking here, we can guide you with Emergency Planning and Business Continuity. We pride ourselves on being informed about risk and insurance and ensuring you have the right Insurance policy for your needs. This article was published by our AFSL Licensee, Insurance Advisernet Australia P/L, www.insuranceadviser.net
General Advice Warning
The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.