Products
Building Insurance Valuations
What Mirfin offers
Buildings insurance
Estimating an adequate amount for insuring a building calls for a professional replacement cost valuation. This takes into account all costs associated with reconstruction in the event of total loss or damage, such as demolition, rubble removal, professional services, building costs and additional building services, as well as the inflation of costs from the date of policy inception or renewal.
Most buildings are incorrectly insured for a multitude of reasons:
- A popular misconception is that insuring for the property’s purchase price or current market value will cover the owner. However, in the event of total loss or even partial damage to the property, this may not suffice to replace the lost property when you include the prevailing building costs.
- A popular (and cheap) method of gauging the sum insured is to consult a builder, estate agent, managing agent or insurance broker - none of whom will be held accountable in the event of a claim.
- On policy renewal, the insurance advisor may recommend a fixed escalation rate but will this may not hold true for a specific building in a specific location year after year.
Average clause
It is important to insure a building to its replacement value and NOT its market value. If found to be underinsured, the insurer may apply ‘average’ to your claims. This means that the insurer is exercising its right to reduce the claim pay-out in proportion to the amount of underinsurance.
Cost & benefits
A professional valuation is more affordable than most people assume, and it is money well spent when considering the many benefits:
- Correct insurance cover – pay the right insurance premium.
- Full claim recovery – no averaging by the insurer.
- Less hassle – there are no disputes with a professional valuation in hand.
- No ‘average’ clause - negotiate with the insurer to delete the ‘average’ clause from the policy.
- Relegate the responsibility – let the valuer determine the sum insured.
- Long-term affordability – live valuation updates are free of charge.
Post-loss valuations
A post-loss property valuation can assist in resolving disputes between the insurer and the insured at claim stage.
Live valuation updates
Insurance renewal is now so much easier with the Mirfin Dashboard!
Renewing buildings insurance by applying a static percentage annually can be problematic as an annual escalation rate of 10 or 15% is often not market-related. The effect of compound interest will very quickly result in building owners either being under-insured or overpaying on insurance premiums. This practice almost never provides correct insurance cover.
The Solution:
The Mirfin Dashboard offers a live update of your building’s replacement value for a period of 3 years, after which a physical property inspection by a professional valuer is recommended.