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Daily Insurance Industry News
Tuesday 22nd of May 2018
March 28, 2010

Aviva warning on commercial property valuations

by Gill Montia

Story link: Aviva warning on commercial property valuations

Aviva warning on commercial property valuations

Aviva is recommending that commercial property owners review the value of their buildings and make sure they are adequately insured.

According to the group, underinsurance is a real risk for property owners, with research indicating that 77% of professionally valued buildings are actually underinsured.

Typical oversights in completing insurance valuations include the costs of removing debris, architects’ and surveyors’ fees, walls, gates, fences, garages and other outbuildings.

The recession has also brought its own problems because while property values might have plummeted, rebuilding costs have not fallen to the same extent, and some business owners may be temped to cut the cost of their insurance by basing cover on the lower market value of their property.

Furthermore, Aviva underwriting manager, Mark Dunham, is suggesting that as we come out of the recession, the cost of reinstating a building could increase as the demand for raw materials, energy and labour rise.

Mr Dunham also warns that directors, trustees or others responsible for arranging insurance could find themselves liable if there is not adequate cover in place.

 

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