A combination of the cost of labour, materials, such as softwood, steel, roofing sheets and concrete, along with the difficulties in sourcing them, presents a major problem, raising the prospect of being under-insured by a minimum of 30% for rebuild costs, according to Acres Insurance Brokers.
“We have seen two examples in the last six months where clients have suffered major fire damage, firstly to a cottage and secondly a farm building,” explained Acres director and insurance broker Nigel Wellings.
“In both instances, when quotes were obtained to reinstate the buildings, the insured values were found to be 30-40% below the rebuild costs we are now being quoted. This has left the clients substantially out of pocket,” he said.
“We are strongly urging all of our clients to review rebuild costs on both houses and farm buildings, and in many cases, we are increasing the sums insured on these properties by 30-35%,” he added.
This does not however mean a 30-35% increase in insurance premiums.
“It is of paramount importance in this current building materials market that farmers have reviewed rebuild sums insured,” Mr Wellings concluded.