Inflation fuelling underinsurance – Chaucer

Re/insurer Chaucer has said that continuing inflation in construction costs is leaving homes and businesses underinsured in the event of a fire or catastrophic event. The carrier said cost inflation had combined with a desire from policyholders to save money and maintain sums insured at the same level, exacerbating the issue.

Chance Gilliland, head of global property delegated authorities at Chaucer, said: “Soaring construction costs driven by scarcity of raw materials, supply chain disruption and higher labour costs could leave UK businesses underinsured and at risk of excess costs.”

“It’s crucial that policyholders review their coverage to ensure that this is sufficient. Otherwise, they could find themselves in the position of having to pay for repairs out of pocket.”

Chaucer cited figures that found rebuild costs were up by more than 10% in the past year.

Image courtesy CHAS

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