Hospitality property owners insurance – Are you underinsured?

 

“A greater proportion of properties are now underinsured and the gap between property rebuild costs and the amount buildings are currently insured for in the UK is widening.”

 

Article from: RebuildCostASSESSMENT.com

The findings arise from the insurance industry’s most reliable benchmark around property sums insured, RebuildCostASSESSMENT.com’s annual rebuild cost analysis and infographic. The data results from almost 27,000 rebuild valuations carried out by RebuildCostASSESSMENT.com between September 2021 and the end of August 2022.

This year’s infographic highlights how 83% of these properties were found to be underinsured, up from 80% in 2021. On average, these buildings were insured for just 66% of what they should have been. The percentage last year was 68%, which shows how the buildings underinsurance gap is widening in the UK.

This gap is biggest among buildings insured for up to £500,000, which are on average only covered for 51% of their rebuild cost. Buildings insured for more than £2 million are closer to what they should be, but still only covered on average for 70% of reliable rebuild cost.

When it comes to overinsurance, 13% of buildings assessed were covered for too much this year, on average by 132%.

Significant impact

These figures paint a worrying picture for many hospitality property owners, who are exposed to a significant shortfall in claims payments should they suffer a loss. It’s worth knowing that UK buildings are on average covered for just two thirds of what they should be, according to data from RebuildCostAssessment.com.

It is evident that the insurance industry is not taking this issue very seriously, and we know that business owners need support and protection from what could potentially result it detrimental financial and emotional consequences.

Get in touch with the Sentio Hospitality team if you have any queries regarding issues raised within this article.