The benefit of accurate valuations
Many organisations inadvertently underinsure their property, plant and equipment, as the full replacement cost as defined in their policy are not followed. Our experience from thousands of insurance valuations over the past 40 years throughout Australia is that more than 80 % of businesses have some degree of underinsurance for material damage – often up to 60%!
Valuations completed for insurance purposes at the time policies are set to be renewed ensures:
- Companies and organisations can provide insurance brokers and insurance companies with accurate figures to ensure the proper level of cover.
- Updated and accurate asset registers speed up the claims process and lowers the risk of claims time hampering business contingency plans.
- A detailed and updated asset register will provide business owners with a better understanding of their assets and improve asset management processes.
Following the 2011 series of natural disasters we saw the impact these factors had on businesses in Queensland. Undersinsurance is a huge problem for the industry and faced with a harder insurance market, the benefits of having your assets reviewed and asset register up to date will only become greater.
AssetVal has more than 175 years of experience carrying out Insurance Valuations for clients. Over the last 5 years alone, AssetVal has completed insurance valuations for more than 30,000 buildings. Each year, a number of these suffer a loss and in all cases, the values advised by AssetVal have proved accurate in protecting the interests of the property owner.