Building Insurance

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:

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:

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.