We’re all acutely aware that it costs significantly more to build today than it did a few years ago, or even a few months ago for that matter. The rising construction costs driven by material delays, material cost increases, labour shortages and building consent delays across the country are well documented.
However, on average, insurance providers only increase your sum insured 3% per year. We’ve been carrying out insurance reinstatement estimates for some of our commercial clients recently and have unearthed a significant disparity between what a property is insured for compared to what it would cost in today’s market to rebuild. Alongside rising building costs, there are a number of components in the construction process that need to be taken into account.
We’re getting to the time of year when a lot of organisations’ insurance policies are up for renewal.
White Associates Director Darin Bayer says if you haven’t had an independent insurance reinstatement estimate, it could be worth doing so.
“It gives you the peace of mind to know that should some unforeseen event damage your organisation’s assets that your insurance settlement will be enough to sufficiently cover your rebuild costs. This way, you’re not left out of pocket.
“We do work with a range of large organisations and body corporates to ensure that construction cost escalation is reflected in their insurance policies. You want to make sure that you will get what your property is worth.”
A White Associates insurance reinstatement estimate covers everything it would cost to rebuild your assets including the likes of demolition, building consent fees and material increases. The report provided can then be supplied to your insurance provider to ensure your policy accurately reflects your assets’ worth.
For more information, please contact us on (09) 362 0624 or email info@whiteassociates.co.nz