Property Values – When Did You Last Update These?

GCMA official supplier Howden Sport say it is vital golf clubs look to review their property valuations every couple of years... Ensuring you have the correct property values are a key requirements from insurers in the event of a claim. Many property insurance policies include an Average Clause, which seeks to counteract underinsurance. The condition makes you responsible for the percentage of the loss proportionate to the degree of underinsurance. If following a claim, it is found a property is underinsurance by 50%, you will be expected to bear 50% of the loss incurred. It is for this reason ensuring adequate valuation levels are vital. An example of this calculation is: Full value - £100,000 Sum Insured (declared to insurers) - £50,000 Loss/Claim - £30,000 Insurers pay Sum Insured/Full Value = £50,000/£100,000 x £30,000 (Loss/Claim) = £15,000 You bear Underinsurance/Full Value = £50,000/£100,000 x £30,000 (Loss/Claim) = £15,000 In the above example, following a £30,000 loss the insurers will only pay £15,000 whilst you will be forced to bear the remaining £15,000 to cover the loss. According to a recent report by RICS, there is an expectation of a 10% increase over the next 12 months in respect of costs of materials. In addition, there is a shortfall in labour roles such as bricklayers and carpenters which causes further delays. (Source below). Furthermore it is critical that consideration is given to the overall cost of demolition in the event of a substantial loss. It is therefore vital that golf clubs look to review their property valuations every couple of years to ensure they are insured on the most adequate basis as possible. Failure to do so can lead to an underinsured claim. Howden Insurance Brokers work with a number of third party providers who are able to assist with property valuations to ensure you are insured to the correct value. We would be happy to arrange introductions to assist you with these requirements. Howden Sport are an Official Supplier of the GCMA and work with a number of clubs around their insurance and risk management structure. With access to a number of bespoke golf insurance product and with expertise in the Sport sector, Howden are uniquely placed to assist you and your golf club. Source - For more information, contact Howden Sport and Entertainment account executive Mike Farrell on 0121 698 8059. Do you subscribe to the GCMA's weekly E-newsletter? Make sure you're not missing out on the latest in the world of golf club management. Click here to join in.
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