Berkeley Alexander Launches Free Rebuild Cost valuation service
18 May 2022
18th May 2022: General insurance provider, Berkeley Alexander (BA), has announced the launch of a new rebuild cost valuation service to help eradicate the problems of over or underinsurance for Commercial Property owners and Mid & High Net Worth clients.
9 out of 10 buildings in the UK insured under a rebuild sum insured basis do not have the correct value. Shockingly, 80% are underinsured, often causing significant issues and distress for the property owner when insurers apply the Average clause, whilst 20% are over insured (on average by almost 160%). That means one in five are paying too much for their buildings cover.
The service has been developed in partnership with RICS regulated firm Rebuild Cost Assessment Ltd and is being offered free of change by Berkeley Alexander to its existing broker partners until the end of June 2022.
Geoff Hall, Chairman at Berkeley Alexander, comments: “The issue of both over and under insurance has plagued the industry for years and the Insurance Act and recent FCA thematic reviews have highlighted how the insurance industry should be doing more to ensure policyholders purchase appropriate levels of cover. Until recently, a professional building insurance valuation would have cost a significant amount of money and time. Independent desktop surveys are now widely available, but our new rebuild service is an innovative approach which makes assessments far more affordable, quicker, accurate and simple to access, in the same place and at the same time as arranging the GI cover.”
The desktop service is live now and covers commercial property up to £10 million rebuild sum insured and residential up to £5 million, and excludes listed buildings bar grade 2 listing. The service costs £160 but BA is offering it free of charge to its existing clients until the end of June this year. Surveys can be conducted at any point in the policy lifecycle - pre-cover, mid-term, or post loss - helping advisers support the policyholder in setting an accurate sum insured and ensuring they receive an appropriate premium for the risk.
