BIBA 2016 Highlights brokers’ need for valuation facility
Following the launch of BIBA’s guide to managing under-insurance at last week’s conference, specialist loss adjuster QuestGates found that brokers visiting their stand really need support when it comes to property valuations.
QuestGates director, Alistair Steward, explains: “We ran a competition on our stand asking brokers to ‘guesstimate’ the value at risk of a property to highlight some of the common challenges and pitfalls of under-insurance. The actual reinstatement value was £19.7M but we received guesstimates ranging from just over £1M all the way up to £500M and the vast majority were more than 25% out. Discussions with brokers visiting our stand revealed that few thought about factors such as demolition costs or the costs of removing debris while others factored in the value of the extensive grounds surrounding the property, which is of course irrelevant when calculating the reinstatement value.”
He continues: “The guide launched by BIBA last week highlights the potentially serious consequences of under-insurance not just for the client, but also possibly the broker. I would urge all brokers to read the BIBA guide to give them some key tools to advise clients on deciding upon a suitable sum insured or limit of indemnity.”
QuestGates was appointed the Association’s preferred partner to manage its valuation facility for members in 2013.
The BIBA valuation facility provided by QuestGates extends beyond a singular buildings valuation service to include plant, machinery and contents, fine art and antiques, and engineering and technology.
The facility also includes the QuestGates business interruption survey service, providing a comprehensive review of a broker client’s existing BI cover and gives recommendations to ensure appropriate insurance protection is in place should a catastrophe hit the client’s business.