INSURANCE SUMS MUST ADD UP
If the worst happens, and you suffer a loss to one of the buildings or infrastructure on your Park then the amount you are insured for becomes an important number. With rising costs of materials and labour, knowing how much to insure for is difficult. There is a lot of focus at present on the rising costs in construction, and in particular in the leisure industry.
Whether it’s replacement caravans and lodges, the cost of timber or the cost of labour. In their latest report on Building Repair Costs, Sedgwick, one of the leading global Claims providers, forecast that the cost of insurance repairs in relation to buildings will rise 10.5% through the first part of this year.
Known as the Insurance Repair Specific Index (IRSI), it monitors the four main cost components typically found in insurance repairs: Labour, Plan, Materials and Waste disposal. If costs of rebuild and replacement go up by 10%, is a 10% increase in your sums insured sufficient?
Or would 15% be more appropriate for you? A reliable source of information, The Department for Business, Energy and Industrial Strategy, also measure the cost of construction materials and in late 2022, they recorded a 12.7% increase. The most robust way to determine sums insured would be to engage a professional surveyor to undertake a review for you and use their report to determine what those values should be.
You may wish to check with your insurer to see if they offer a valuation service. If you have a policy with Compass, we have an exclusive Valuation Service, which will help to give you peace of mind by providing a range of options for professional valuations of all the buildings on your park. It offers solutions from remote desktop surveys to on site physical valuations, all designed to give you the insight and information you need to insure your business.
The service includes:
• Choice of desktop review or on site survey(depending on the size of your business and specific needs).
• Full reports with declared value, rebuild and sum insured estimates.
• Discounted follow up reports at 3 and 5 years.
• Access to quarterly building cost indices and reports.
Prices start at £150 + VAT for a desktop review and £800 + VAT for an onsite survey and are linked to the size of your business and the sums you need to insure for. To find out more about the service you can speak to your Regional Account Manager,
contact us via:
0344 274 0276