Underinsurance remains a persistent nightmare for property owners and landlords, with up to 80% of commercial properties potentially having incorrect sums insured. The Average Clause in policies means insurers pay a proportion based on the stated sum insured versus actual rebuilding cost.
Deliberate underinsurance could lead to claim rejection. Rising material costs, impacted by supply chain issues and labour availability, exacerbate the problem. Property owners must fully understand the policy definition of “Buildings,” which includes various structures, fixtures, professional fees and debris removal.
Professional advice is essential for determining the correct sum insured. Despite index-linked sums, a regular 3-year revaluation is crucial. Let’s discuss your commercial property concerns—reach out for a chat.
Paul Davies ACII | Tel: 07772640498 | enquiries@titlepolicies.co.uk