RebuildCostASSESSMENT.com director Will Molland MCIOB AssocRICS, believes that the gap between buildings sums insured and property rebuilding costs will continue to widen in 2022, leaving many exposed to significant levels of underinsurance.
“The loss of around 1.5 million foreign workers from the UK over the past two years, many from construction, together with extended lead times and increased global demand for building materials, such as high Chinese demand for steel, have all combined to create a perfect storm around rebuilding costs,” explained Will.
“I would expect inflationary pressures and supply chain challenges to continue, at least for the first two quarters of 2022 and perhaps beyond, depending on what now transpires with the pandemic and the effects of current high energy costs.
Our own data shows that on average in the UK, buildings are covered for just 68% of the amount they should be.
However, with rebuild costs continuing to rise, the underinsurance situation is likely to get even worse for those who haven’t had a professional valuation carried out recently.”
On a lighter note, Will also predicted more £50 Amazon voucher winners in their regular YouTube based ‘Either Or’ fun quiz, where participants choose either one thing or another to win a prize.
‘Perhaps we’ll have a winner from Towergate next?” said Will
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Underinsurance
Underinsurance is still incredibly common (whether in times of crisis or not). Learn more about it, its dangers and how to avoid it by visiting our underinsurance hub.
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About the author
Will Molland, Director Rebuild Cost Assessment.
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The information contained in this bulletin is based on sources that we believe are reliable and should be understood as general risk management and insurance information only. It is not intended to be taken as advice with respect to any specific or individual situation and cannot be relied upon as such. If you wish to discuss your specific requirements, please do not hesitate to contact your usual Towergate Insurance Brokers adviser.
