The Rebuild costs for UK buildings has increased phenomenally over the last 6 months. As a result of the COVID pandemic and UK’s Brexit independence, building materials have sorn dramatically in price.
“Prices have risen by between 10% and 15% for products and materials this year”, according to the Builders Merchants Federation (BMF).
With a shortage of materials such as timber and plaster, these building products are becoming more sought after. Furthermore, prices are increasing and so too are labour prices following an exit of the EU cheap labour workforce. This means that rebuild costs for buildings have increased. Yet many commercial property owners and homeowners are unaware of the implications of the rise and how it stands to affect their property insurance.
Buildings insurance policies have annual indexation or day one uplifts applying. They would of allowed for these increases in the past, however with the rising costs mentioned this will increase the potential for underinsurance.
Checking that rebuild costs are adequately covered
Consequently, recent data from RebuildCostASSESSMENT, highlights how on average, buildings are only covered in Britain for just 68% of the rebuild cost amount that they should be.
Here at JRW Risk Solutions we encourage all West Midlands and UK property owners of residential and commercial industrial properties, warehouses, retail and office space, plus high-net worth property, to review their buildings insurance and sums insured.
If businesses require further commercial insurance support and for competitive and confidential reviews then JRW Risk Solutions can help. For more information, please contact JRW Risk Solutions or see our website for more details.
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