Arthur J. Gallagher and independent specialist Cardinus Risk Management have partnered to offer a product that will help eliminate the risk of underinsurance.
Nearly 80% of commercial properties in the UK could be insured by as much as 60%. With that in mind, Gallagher and Cardinus will offer property owner clients across the UK access to building valuation surveys in order to ensure their properties are adequately insured, according to a release.
“As the costs of rebuilding continue to rise, we need to ensure our property owner clients have all the tools and support they need to counter the risk of underinsurance, prevent any reduction in claims payment through ‘averaging’ and secure settlement as quickly as possible, said Gred Spiteri, national practice leader for real estate at Arthur J. Gallagher.
Spiteri said that underinsured properties face more than just a risk of repair shortfalls.
“When property assets are underinsured, it’s not just a shortfall in coverage for repair and rebuild costs that the owner faces in the event of a claim,” he said. “Underinsurance exposes them to a raft of interconnected consequences. If funds aren’t available to complete the rebuild, increased borrowing may be required or the rebuild period extended with all the associated negative impacts on balance sheet. Tenants could even see themselves dispossessed and the owner exposed to legal action from lenders and leaseholders as a result of the inadequate levels of insurance cover, bringing brand and reputational damage into the equation too.”