Insurance Valuations
With our vast experience in insurance valuations, we know getting it right involves obtaining a deep understanding of your organisation, considering many factors such as your insurance policy, indemnity value, plant optimisation, future business plans, and the market in which you operate.
Accurate insurance valuations are critical to ensure the level of cover corresponds to what will be required to reinstate the assets in the event of a loss. There are various benefits to undertaking a professional insurance valuation which include the following:
Confirmed insured values by location as required under the insurance policy
Assist with business interruption reviews and establishing lead times for accurate calculations
Reducing/removing the risk of under insurance and insured losses not being paid in full
Implementation of internal processes, such as asset registers
Reducing/removing the risk of over insurance and paying unnecessary premiums
Compliance for risk mitigation
Greater negotiating power with insurers at renewal
Set maximum foreseeable and probable loss scenarios
Fast-tracked claims process without disputes around the insured values
Remove the potential risk to directors of setting insured values in-house
Provide documentary evidence to insurers/loss adjusters to validate claims
Demonstrate to insurers you have an independent valuation
Provide documentary evidence to insurers/loss adjusters to validate claims
Mitigating Financial Risk
A valuation that is not fit-for-purpose can result in an insurance gap when a loss occurs. Common pitfalls include:
- Basing the increase on real estate market conditions
- Relying on a valuation from a bank, builder, architect, or real estate agent
- Relying on advice from an in-house accountant or engineer
- Referring to building guides
- Adopting book value
- Using financial valuation reports and deducting the land value
- Adopting the second-hand purchase price of an asset
To avoid being caught out with inadequate cover, organisations must take ownership of the valuation process and seek professional advice to ensure that insured values and cost assessments reflect the current replacement value of the asset or property. If you are underinsured, you are effectively self-insuring any gaps in cover.
Valuations can help you mitigate financial risk, as well as fast-track the claims process by avoiding disputes around the insured values. If there is no solid basis for the declared values, the resulting investigations may lead to protracted claims processes and delayed settlements lasting months or even years.