Towergate Insurance Brokers is urging businesses and homeowners to carry out fresh property valuations as soaring rebuilding costs mean that most properties are “substantially” underinsured. A recent study conducted by the broker suggests that more than 90% of commercial properties in the UK are incorrectly covered.
Research by the Office for National Statistics has shown that between July 2020 and July 2021 the cost of materials rose by 20%.
Robert Lewis, corporate broking director at Towergate said: “…buildings should be insured for the amount that it would cost to rebuild them. However, this shortfall in cover is being fuelled by a sustained rise in construction costs.
“Of course, some people will be reluctant to alert their insurers to the higher rebuild cost of their property for fear that it will increase their insurance premium. What I say to this is that the rising cost of your insurance premium is likely to be negligible and it will be absolutely nothing when compared to the shortfall in your insurance coverage, should your property be damaged.”
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