The first of our planned insurance articles, this one on rebuild costs.
So many emails, calls, messages regarding insurance issues that we decided to plan a series of articles. Rebuild costs is high on the agenda for the majority of thatched home owners, particularly those with listed properties.
We value our specialist insurance Associates and have asked them to contribute with 100 words on the topic to help everyone understand more about this important topic. Interesting and useful responses.
Here’s what they said – Click on the headings or logos to link to their contact details
“Is your home insurance up to date?
Brexit and the invasion of Ukraine have resulted in the increased cost of building materials and labour. For thatched and listed properties, specialist materials and skilled craftspeople used and for repairing and constructing heritage homes can be more expensive than those used for standard buildings.
By obtaining an up to date rebuild cost, you can base your insurance on this figure and avoid the pitfalls of being underinsured. We strongly recommend you get a rebuild cost assessment every three years from a reputable rebuild cost assessor.”
“You need to have the right rebuild cost of your thatch property or the insurance may not be worth the paper it is written on. If you are underinsured by up to around 20% then average may apply depending on insurer – so a £100k claim may only pay out £80k, leaving you out of pocket by £20k.
Underinsured by more and the insurer may refuse the claim entirely on grounds of potential fraud. Desktop surveys are OK but not accurate in our view, best to get a RICS qualified surveyor to visit. We can help, call today.”
“Did you know that over 76% of UK properties are underinsured, leaving homeowners at risk of unexpected costs? Thatch properties face unique challenges, with intricate structures and materials often underestimated in rebuild cost assessments. If a claim is underpaid, the financial burden can be devastating.
Accurate rebuild cost assessments are essential to ensure comprehensive coverage tailored to your thatch home’s distinct needs. At Rebuild Cost Assessment, we help homeowners avoid costly underinsurance by providing reliable, expert rebuild cost evaluations. Protect your home’s heritage and secure peace of mind by ensuring your thatch property is properly covered.”
“Establishing an accurate buildings reinstatement cost is a critical yet challenging aspect of insuring homes with ‘non-standard construction.’ Under the contract of insurance, this is the policyholder’s responsibility. Errors can lead to overpaying premiums, shortfalls to claim settlements, or voided cover. Thankfully, some insurers subsidise or fully fund independent RICS surveys to address this.
At Thatch Cover Insurance Specialists, we offer access to insurance-approved surveys from just £90.00 (+VAT). Ensuring you’re correctly insured could make this the best money you’ve ever spent. Don’t hesitate to speak to our experts for unrivalled advice on this and many other insurance related topics.”
“A recent study has found that 70% of residential properties are underinsured and 25% are overinsured. On average, underinsured buildings are covered for just 64% for the amount they should be. While, on average, overinsured buildings are covered for 122%.
A desktop based rebuild valuations starts from £155+VAT. If you have any concerns over the rebuild sum insured for your property, we suggest speaking to your insurer or insurance broker who should be able to offer advice.”
Rebuild costs, especially for listed properties of which the majority of thatched cottages are, have definitely, primarily due to material and labour cost increases. This has therefore had a knock on effect on thatch insurance which is the reason for this article asking for valuable input from our specialist thatch insurance Associates.
The importance of being insured with correct rebuild costs has been well explained by them above and we thank them for the time in assisting with this clear information.
Please make sure your rebuild costs are correct, so that you have peace of mind that should the worst happen you are safely covered for insurance purposes.