The existing structure is the backbone of your renovation project and it is important to make sure that its rebuild cost is accurately assessed.
The rebuild cost of a property is affected by its age, its listed status, its location and its construction. It is important that you combine all of these factors when considering the sum insured for your existing structure within a renovation project and anticipate the problems that may occur when you are trying to reinstate an existing structure and these factors come into play.
If you are in any doubt as to your existing structure rebuilding cost we strongly recommend that you ask one of our partner surveyors to provide a rebuilding valuation that you and your insurers can rely on in the event of a loss.
The existing structure is the backbone of your renovation project and it is important to make sure that its rebuild cost is accurately assessed.
This need not be particularly expensive but gives you complete peace of mind should a loss like those included in our claims case studies occur, putting your project back or halting it altogether.
What is under insurance?
The purpose of making sure that the existing structure is valued accurately is to avoid under insurance at the point at which a claim is paid.
Under insurance is applied to the claims settlement in the ratio to which it applies to the existing structure reinstatement cost. In plain English, this means that if the rebuild cost of your existing structure is £1 million, and you have only insured it for £700,000, you will only be paid 70% of any loss that occurs.
It is important to understand the drastic effect that construction and listing can have on a rebuild cost valuation and how your ability to reinstate a property can be hampered by the involvement of English Heritage.
The purpose of making sure that the existing structure is valued accurately is to avoid under insurance at the point at which a claim is paid.
In effect, you are in a position where a third party, whose priority is the preservation of the building, is writing cheques which you will have to cash.