End-of-year insurance check real estate


Jan 2023

Evaluate and improve insurance

As the end of the year approaches, it is a good time to evaluate and plan for future goals. Don't forget to also take stock of your insurance coverage and make necessary adjustments based on things that have changed over the past year. That way, you will enter the New Year confident and secure.

Here are some of the most important aspects:

Changes within portfolio

There have probably been changes within your portfolio over the past year. It is important that the actual situation matches the insured capacity on the policy. For example, a claim may be (partially) rejected if a change in the nature of the business or the purpose (residential, storage, hospitality, etc.) of the building has not been reported. It is also important to report when premises are out of use or vacant for more than 3 months.

Check that the current situation matches the information known to your intermediary and report changes.

Sum insured

Do the sums insured match the actual situation? The insured value of buildings is often determined by means of a reconstruction value appraisal. The appraisal value is indexed every year so that the sum insured keeps pace with the increase in the value of construction costs. The validity period of an appraisal is 6 years this means that reports from 2016 are ready for evaluation.

Of course, you can also set your own sum insured. Note that these are also indexed to meet the increase in value of construction costs. Next year rise construction costs again and, of course, you don't want to be underinsured.

Check that the insured value of the objects on the policy matches the actual situation.

Period rental loss

By law, a tenant does not have to pay rent during the period that he cannot live in the house because there is damage to the property. As a property operator, you suffer a loss as a result; rental income is lost. Fortunately, the insurer will reimburse this loss of income if the loss of rent is the result of a covered event. Loss of rent is standardly insured for one year. In some cases, however, the period or amount of the insured amount may not be sufficient. Given the current long delivery times of building materials and stagnation in construction, it may pay to increase the rental loss period to 2 or 3 years.

Check at object level whether in current circumstances coverage for loss of rent is adequate

Market-based terms and premium

The end of the year also means the period when insurance contracts are renewed. This year we are again seeing a lot of cancellations and premium increases for fire insurance across the market. Does this also apply to your insurance portfolio? Get a second opinion that checks the market conformity of the terms and premium. This way you create an additional option for lodging your portfolio, are guaranteed the best insurance solutions and avoid last minute unpleasant surprises.

Check for insurance cancellations and get a second opinion

Brickbase is happy to help evaluate your insurance portfolio so that your business is cost-effectively insured. Want to make sure you are optimally insured? Easily book an appointment online with one of our insurance professionals! 

Wondering what Base Insurance can do for you? Book a free 30-minute second opinion.

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