C ardinus P roperty & I nsurance
Reinstatemen t Cost Assessments Ov er t h e l ast t h ree years w e ’v e recti f ied o v er £ 9 b i ll ion o f underinsurance on properties. A re you e x posed to serious f inancia l ris k?
What is a Reinstatement Cost Assessment?
A Reinstatement Cost Assessment will help you to avoid the disastrous consequences of underinsurance, which include: The claims payment doesn’t cover the full property repair/rebuild cost Funds unavailable to complete the rebuild Increased borrowing required Negative impact on balance sheet Complex negotiations with insurers Unhappy leaseholders and tenants Extended rebuild times Exposure to potential legal action for inadequate levels of cover from lenders and leaseholders Damage to reputation and brand. What a r e the b ene f its o f a Reinstatement Cost Assessment?
A Reinstatement Cost Assessment calculates the potential cost to rebuild a structure. It’s essential that property managers arrange regular assessments of their building(s), to ensure they’re fully insured in the event of a fire or other devastating incident.
What c a u ses u n d e r ins ur an c e?
A property could be underinsured if:
A professional valuation hasn’t been carried out in the last three years Figures are based on market value rather than the reinstatement costs Historical figures have been rounded up or don’t account for a rise in labour and materials costs The valuation is based on developer figures and doesn’t include debris removal, surveyor fees and the cost of meeting local authority requirements for a rebuild or VAT.
80% of the properties we assess are underinsured, leaving their owners exposed to serious financial risk.
020 7469 0262 | property@cardinus.com | cardinus.com/property-services
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