Case Study - Under Insurance
A listed building under insured by £235,000
The property
Chubb sent an appraiser to evaluate the rebuild cost of a grade II 17th century timberframe
farmhouse in Buckinghamshire. The property is listed, legally obliging the owner to rebuild
to a similar quality.
Chubb's insurance would cover the cost of this - even if it cost more to rebuild the property
than our rebuild valuation. Most other insurers would not. In fact they might apply an 'average clause'
and proportionately reduce the amount of the settlement so that the owners would have to rebuild
to the standards demanded by English Heritage - from their own pockets.
Valuation from previous insurer/owner
£290,000
Chubb's rebuild valuation
When Chubb became the insurer, our appraiser valued the rebuild cost to be £525,000 - meaning
the property was formerly under-insured by £235,000.
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