If you own a high value building in the UK, chances are you’ve wondered about what it would cost to rebuild it, and whether you have adequate high value buildings insurance. Well, rebuilding costs for domestic property often are calculated by using data provided by an organisation called the Building Cost Information Service (BCIS). BCIS is a leader in providing independent, accurate and comprehensive rebuilding cost information to the public and private sector alike. BCIS has been collecting data for nearly half a century, and makes that information available to any interested person by way of publications, on-line applications and data licensing. The organisation also furnishes research support and consultancy to a wide variety of public and private sector clients.
How Do BCIS’ Activities Relate to Cover for High Value Buildings?
Good question. The short answer is, not very well. BCIS data generally applies to the “standard” home category, not high value homes. High value properties often have unique features and specifications with replacement costs that usually exceed the sums specified in BCIS-furnished data. For that reason, owners of high value homes have specialised insurance needs. BCIS’ replacement costs don’t take into account the specialist materials and specialist construction techniques needed to reinstate high value homes. This data simply falls outside BCIS’ scope.
Why It’s Important to Consult Expert Providers of Cover for High Value Buildings
Firms that offer high value buildings insurance have the technical expertise necessary to determine replacement costs that allow for these properties’ particular features. Only then will the real expense of reinstatement be accurately matched to the level of cover. Therefore, owners of high value properties are advised to obtain cover that exceeds what’s specified by BCIS; otherwise, they run the risk of being severely under insured. The BCIS price per metre replacement cost really doesn’t apply to high value homes, because such homes are much larger, and have many costly extras not found in standard homes. Examples are fire protection systems, security systems, air conditioning, high-tech heating systems, and hot water supply systems. These, as well as many other features of high value homes, fall outside the purview of BCIS.
Why Rebuilding Costs are Higher than BCIS’ for High Value Properties
Since high value buildings often are older properties, the cover must allow for rebuilding to the same specification that existed before the loss. All work must be performed according to current building regulations, and can quickly become quite expensive. Rebuilding a house made from stone could cost as much as 50% more than rebuilding a house made from brick. In addition, since many older high value properties have insufficient foundations, the cover has to allow for the cost of rebuilding foundations that conform to current regulations. Finally, the policy should cover activities like demolition and debris removal, along with fees charged by architects and surveyors.
For all these reasons, owners of high value properties are advised to obtain adequate specialist high value buildings insurance that exceeds the costs specified by BCIS.