Underinsurance is a rising problem in the buy to let industry. This occurs when a landlord provides an inaccurate rebuild cost of their property for insurance purposes. Not only does this threaten to affect the settlement of any potential claims, but there is also contractual conditions under the lease that require full reinstatement of the building.
“Property owners should carry out professional building valuations at least every three years. This guarantees an accurate rebuild cost and enables the insurer/loss adjuster to concentrate on settling any claims that may arise rather than having to investigate possible underinsurance issues and causing unnecessary delays.”
It is increasing likely that mortgage lenders will request a property is insured for a minimum amount. In severe underinsurance cases, failure to meet this contractual obligation could even lead to foreclosure on any loans secured against the property.
iInsure365 can not advise on your rebuild cost. The best way to calculate this is to use a professional surveyor, however you can also use the association of British Insurers rebuild cost calculator. This can be found at https://abi.bcis.co.uk/
For a no obligation landlords insurance quotation on your freehold property, contact iinsure365 on 01273 827090 or
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