Share-of-Freehold property with three flats.
I got renew quote from same Ins broker with Buildings Ins with 50% up lift for inflation purposes.
Declared Buildings Value
£381,848 (Index linked from £378,217)
Buildings Sum Insured
£572,772 (Index linked from £567,326)
One of the other LL's is keen to save money so got a competitive quote from another Ins broker. His was more expensive by £150. But said, he requoted with the lower Declared Buildings Value and it came out cheaper.
Saying:
However, I have looked at the building sum insured again and have obtained revised quotes based on the figure of £381,848 (as declared on the previous schedule). If you choose to use this sum insured, the revised premiums are £654.44 and £690.56 respectively. However, this is based on index linking and not uplift (as per your current policy).
I have done this because your current Policy is in fact based on the lower figure too but obviously with the uplift. This means they would cover up to the higher figure but only if inflation had increased the original rebuild cost during the period of Insurance. (for example if on day 1 of the Insurance, the rebuild cost was £381,848 and on day 364, it jumped to £572,772. In the current climate, it doesn’t look like there is much risk in this happening. However, obviously, it is your choice and responsibility to ensure the figure is accurate.
But potentially run the risk of under-insuring ourselves?
What do other LL's think? Is the 50% uplift worth it to pay extra?
Any advice appreciated
I got renew quote from same Ins broker with Buildings Ins with 50% up lift for inflation purposes.
Declared Buildings Value
£381,848 (Index linked from £378,217)
Buildings Sum Insured
£572,772 (Index linked from £567,326)
One of the other LL's is keen to save money so got a competitive quote from another Ins broker. His was more expensive by £150. But said, he requoted with the lower Declared Buildings Value and it came out cheaper.
Saying:
However, I have looked at the building sum insured again and have obtained revised quotes based on the figure of £381,848 (as declared on the previous schedule). If you choose to use this sum insured, the revised premiums are £654.44 and £690.56 respectively. However, this is based on index linking and not uplift (as per your current policy).
I have done this because your current Policy is in fact based on the lower figure too but obviously with the uplift. This means they would cover up to the higher figure but only if inflation had increased the original rebuild cost during the period of Insurance. (for example if on day 1 of the Insurance, the rebuild cost was £381,848 and on day 364, it jumped to £572,772. In the current climate, it doesn’t look like there is much risk in this happening. However, obviously, it is your choice and responsibility to ensure the figure is accurate.
But potentially run the risk of under-insuring ourselves?
What do other LL's think? Is the 50% uplift worth it to pay extra?
Any advice appreciated