Calculating Your Sums Insured – Commercial Buildings

Commercial Buildings

When discussing Buildings insurance for your Business, you will be asked for your “Sums to be Insured” or “Declared Values”. It is important that your “Declared Values” are as accurate as possible, as your premium will be calculated using these figures (regardless of the sum insured the recommended product may provide).

Your Buildings premium is calculated using the current “Rebuilding Cost” of your property, taking into account specialist or unusual construction materials or methods, labour costs, demolition & site clearance and professional fees involved in the reconstruction of the property, either to modern standards or to be in keeping with the locality (and taking into account any local authority requirements).

We strongly recommend that you contact your local RICS Surveyor for an up-to-date “Insurance Valuation”, especially if you recently purchased the property without obtaining a professional Surveyor’s report before completion, or have not had a professional valuation carried out within the last 10 years.

These sums insured should not be estimated or guessed, and should only be calculated by a qualified Building Surveyor. Under-insurance is often the cause for dispute between policyholder and Insurers during a claim, as most policyholders have no idea what it would cost to rebuild their property and rely entirely upon the current Market Values of similar or neighbouring properties. Please note that the current “Market Value” is not an accurate reflection of the current “Rebuilding Cost”, and can prove detrimental when seeking quotations.

Or, where you are the Tenant, and not Owner, of the Building you occupy:
Tenants Improvements – the costs incurred in appointing a suitable contractor, plus materials, to reinstate those improvements installed by you, or at your request, to tailor leasehold premises to the operational needs of the business.
Such “Improvements” include (but not limited to) sales counters, partition walls, a mezzanine, kitchen units, air conditioning and/or heating systems, intercoms, lighting, 3-phase electrical wiring and/or data cabling, and
Loss of Rent Payable – This figure will be annual rent payable by you to your Landlord, under the terms of your lease agreement.

For your Property Owners Insurance, please click here –

For your Business Insurance (including Buildings cover) please click here –