When an industrial property owner was hit with a massive insurance premium increase, they turned to us for help. What followed was a textbook case of how an accurate rebuild valuation can change everything.
The Challenge
Just one month before their insurance renewal, a property owner was referred to Construction Cost Consultants by their broker. Their financials were under real pressure:
- At the November 2023 renewal, the insurer’s valuation increased the sum insured from $2.5M to $6.385M
- Total annual insurance costs, including Business Interruption and Liability cover, jumped to $40,000
- The owner wasn’t passing all these costs on to tenants, severely impacting the investment’s viability
- In response, they reduced cover to Indemnity Value ($4.27M) and halved Business Interruption cover to 6 months – an unsustainable compromise
Our Response
Engaged in October 2024, we moved swiftly:
- Completed a Commercial Rebuild Valuation in 10 days
- Established an accurate replacement value of $4.95M, avoiding significant over insurance
- This in turn reduced the FENZ levy basis from $4.27M to $1.95M, easing another pressure point
The Results
Using our data, the broker successfully remarketed the policy, securing:
- A 56% reduction in annual premiums, from $40,000 to $18,500
- Restoration of full Replacement Value Cover
- Tripled Business Interruption cover – from 6 to 18 months
- Improved long-term financial viability of the property
Why It Matters
This is a real-world example of how robust, evidence-based valuations can dramatically reduce costs and improve coverage - especially for commercial property owners facing increasing insurance pressures.
Accurate rebuild valuations aren’t just a compliance tick-box - they’re a strategic asset.
If your clients haven’t reviewed their insurance valuation recently, they may be paying too much or carrying the wrong cover.
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