Whether you are a Self-Builder, a Property Developer, a Property Owner or a Contractor, the rapidly rising price of building materials will have an effect on everyone.
The figure you have noted down one or two years ago, even 6 months may no longer be suitable for the current environment.
Construction materials cost increases have reached a 40-year high based on the annual growth of the BCIS Materials Cost Index with rises of up to 27% across the board for all building works (Homebuilding.co.uk).
Costs are expected to continue rising into the near future and making sure you’re aware of this is fundamental to ensure your projects go as smoothly as possible.
Increased demand in the construction sector, paired with the global pandemic, Brexit and other logistical issues have seen projects delayed, deadlines missed and a lack of labour availability even when resources have been obtained. All contributing to the amount of stress you’re already under.
Now more than ever before there is a need to pay closer attention to these costs and how they can affect their cashflow, current and future projects to see if a change in your approach to costing and budgeting is necessary. The same should be said with how you approach your insurance.
It is estimated that 80% of U.K. properties are underinsured and on average they’re only insured for 68% of their correct value (rebuildcostassessment.com). If you’re reading this, chances are you’re underinsured and need to increase your sums insured.
Don’t get it wrong as it could cost you lots..
At Titan Insurance, we strive to make sure you’re sufficiently covered and can point you in the right direction for you to make an informed decision. In the current climate being correctly insured should be of the highest priority. Things can go horribly wrong if you’re underinsured e.g. not getting your claim paid in full!
Whether that be the cost of the new house you’re building, the properties you own or looking at the Contract Works limit of indemnity you need for your clients, can have massive implication if it’s underinsured.
If you’re underinsured, the insurer can impose an average clause, which means if you insure for less than the full value of the property, a claim can be reduced in proportion to the amount of the under insurance. This can leave you open to a lack of funds to rebuild lost works, rebuild your own properties, or leaving your clients out of pocket looking for answers. Don’t leave it to chance….