An insurance brokerage is offering a reminder to all business owners that the national shortage of building materials has a knock-on effect on their insurance costs.
H&H Insurance Brokers is warning that the UK is undergoing a huge shortage in building materials – mainly due to disruptions caused by the COVID-19 pandemic and partly because of Brexit. The shortage has led to the prices of timber and steel rising rapidly month-over-month. The broker also pointed out that in September 2021, the price of timber surged by 23% – and it is currently 64% higher than its price in July 2020.
Chris Clement, H&H Insurance Brokers commercial director, has advised that business owners should ensure that they have the appropriate cover for rebuild costs, whether for their agricultural or commercial buildings.
“The prices of products like timber and steel are often seeing double digit, month-on-month increases. Many business owners may not have considered how this would impact on their insurance and they run the risk of significantly losing out should they ever need to claim,” said Clement.
“If buildings are destroyed beyond repair through, for example, structural damage or a fire, then you really need to see what cover you have for rebuild costs - if the building materials have cost more to purchase, then the insurance needs to be able to cover the higher amount.”
Clement also highlighted the importance of business interruption cover, which can helps protect a business’s income should it be unable to operate for some time.
“If your rebuilding process is delayed for several months because of this delay, then how will you protect your income if your business is unable to trade for months, or in some cases, a number of years?” he asked.
The commercial director also recommended that business owners should retain the services of a surveyor to re-evaluate their buildings as rebuild costs continue to increase, and should also speak to their broker to ensure adequate coverage is in place.
