Columnist

Over 44,000 storm-hit businesses lodged claims in 2014

By John Valentine, Director Building Services, Dunlop Heywood

Winter has well and truly hit with the Met Office’s trendily-named storms for UK bringing with them not just the risks of wind or water damage, but the potential for a flood of insurance claims.

Commercial property damage can be caused by anything from burst pipes to gale force winds or even heavy snow thanks to our inclement climate; so now is the time to think about getting your insurance assessed to make sure you have the right cover.

Last year the Association of British Insurers members received 44,700 insurance claims from businesses for storm damage and a further 3,100 for flooding.

Under insuring offers huge risks to owners and could potentially affect the future of your business if there’s a shortfall in an insurance pay out. The flip side of the coin of paying over the odds for your premiums means its wasted money that could be doing a better job in your bank account than your insurance company’s.

Relying on historic data alone to calculate your exposure is a risk but carrying out an expert Reinstatement Cost Assessment to get an accurate Declared Value will help safeguard against under or over insurance.

The RCA deals in cold hard facts - establishing an accurate gross internal area and then measuring and pricing each property individually based on the construction; specification, type and quality of finishes, mechanical installations and electrical services are all taken into account as well as location and access.

The building’s heritage status, Conservation Areas or the presence of hazardous materials are also important considerations that can easily be overlooked.

Once in place, regular reassessments can quickly pick up any changes in rebuilding costs, construction techniques and market conditions, spotting any over inflation of Declared Values, as well as insufficient cover.

RICS’ guidelines advise that a full assessment from first principles be undertaken every three years, so if you don’t have one in place now then start 2016 with a RCA New Year resolution.

John.valentine@dunlopheywood.com

This was posted in Bdaily's Members' News section by Dunlop Heywood .