Sheffield broker IFM Insurance warned commercial property owners in South Yorkshire to ensure their building is properly insured and not at risk.
This follows latest research by the RICS Building Cost Information Service, which found that 80% of commercial properties are underinsured.
In 2010 AVIVA also revealed that under-insurance is a real risk for property owners. The findings of its research indicated that 77% of professionally valued buildings are actually under-insured, putting commercial property owners’ investment at risk.
Typical oversights in completing insurance valuations include the cost of removing debris, architects’ and surveyors’ fees, walls, gates, fences, garages and other outbuildings. Difficult economic conditions have also brought problems because while property values might have plummeted, rebuilding costs have not fallen to the same extent, and some business owners may be tempted to cut the cost of their insurance by basing cover on the lower market value of their property.