scout hut
14 April 2022

Is your Scout or charity property underinsured?

When it comes to calculating your sums insured for the purpose of your buildings and contents insurance policy, you need to calculate a realistic estimate as to how much it would cost to replace or rebuild everything from the ground up.

Due to a strain on supply chains, the costs of goods and materials are in short supply and labour is much harder to source post-Brexit. This has pushed the cost up of construction significantly, which means that the amount to rebuild your commercial property may now be much higher than you think. Since September 2021 alone, the cost of building a 3-bedroom semi-detached house has soared by 14%.

How does underinsurance affect you?

For property owners, insurance offers a crucial safety net, protecting property assets against unforeseen events. The purpose of this is to cover the cost of repairs or rebuilding work after an insured event like fire or flood. If there is a gap between how much your property is insured for and how much it will realistically cost to rebuild it, this could have a significant financial impact should you need to make a claim.

If you’ve underinsured by half, then any partial claims you want to make on your building or contents policy will be half as well, meaning you’ll have to make up the shortfall yourself.

It’s worth getting your calculations right from the outset, so this doesn’t happen.

Avoiding underinsurance as a property owner

We recommend that you should get the rebuild cost of your property confirmed by a professional valuation service provided by a suitably qualified valuer, surveyor, or builder.

Alternatively for Scout and Girlguiding buildings, which are insured on our Property and Equipment policy, we can arrange a free building estimation survey. This is a desktop valuation by a team of professional assessors, giving you a report offering advice on the cost to rebuild your property from scratch.

Speak to our team of friendly experts to help you get the right level of insurance for your charity or Scout property.

Further information

For more detail see our step-by-step guide: How to get the right level of buildings and contents insurance