Why are our valuations more accurate?
As a trusted independent service provider we offer accurate property and insurance valuations. Read the below to view the measures we take to insure our valuations are reliable.
Our Accurate Measures Include
Value Accurate
The method of estimation we use is that of a detailed bill of materials and labour to which we add fees and provisions.
For example, preliminaries and site management, builder’s profit, contingency, demolition, professional fees, retention allowance and sundry fees in the case of buildings.
When dealing with machinery, it is not only the replacement cost of the machine that is important but also exchange rate conversions, shipment cost (if imported), and installation costs. If a machine has been modified from the factory standard, this additional cost needs to be taken into account in determining the insurance value.
Escalation Accurate
Included in the method of estimation is pre-construction escalation and during construction escalation to account for time delays and the actual project duration.
We advise on annual updates so as to benefit from a profiled property escalation on the bill of materials and labour and not a generic 10% escalation which can over- or under- insure the property.
It is important to know that immovable assets (buildings) normally increase in value over time while movable assets in general tend to decrease. Therefore, you cannot apply a generic annual increase on your policy as you will be over paying on your monthly premium and if you should claim you will not get the benefit as the asset will be replaced with the current day value equivalent.
Is your insurance escalation generic? Let us help you tailor it to your profile.
Risk Accurate
If we perform a risk survey, then the property and assets can be accurately insured in terms of potential risks.
Rather than assuming a generic risk profile, we advocate a property-specific or asset-specific risk profile to ensure you are adequately insured.
Policy Accurate
Linked to the risk survey is the specification of risk on the insurance policy.
Insurers are not obliged to pay-out claims for assets that have not been specified on the insurance policy. We can consult with you on accurately structuring your insurance policy for your specific risks. One also has to take into account the value-excess ratio and whether it will be worthwhile insuring an asset if the excess is at a certain amount.
Premium Accurate
If the value estimation, risk survey and policy structuring was done correctly, you will benefit from an accurate monthly premium and avoid average.
The monthly premium is precise in terms of the value being insured as well as the types of risks you are exposed to and knowing that you are paying a premium for risks and assets you have specified in your policy and structured correctly. In the event of a claim, you will most likely be paid out in full, instead of being subject to the average clause.
