INSURANCE

There is a tendency to become complacent towards annual reviews of insurance
cover on buildings, which only a loss might disturb. Without doubt, the norm of companies to rely on indexation of an initial opinion of cost, and in some cases
even a market valuation, has caused insurance cover to become increasingly remote from a realistic rebuilding cost estimate in many instances.

Alterations, extensions, or internal changes within structures may be overlooked
whilst companies rely on the simplicity of indexation. Additionally, the index itself
will almost certainly be an amalgam of costs partly unrelated to the type of
structures under consideration. Regular professional valuation advice is the most efficient cost effective "index".