UK commercial properties underinsured by up to £325 billion

This means hotels, shops, factories, warehouses and many other types of commercial buildings across the country are under-protected in the event they sustain any kind of damage. Businesses already facing financial difficulties may well not survive the consequences of underinsurance, yet many property owners and small firms are unaware of the situation.

The new data shows that 9 out of 10 properties are insured for the wrong amount, with the vast majority; 79% - underinsured, severely reducing the amount paid out to cover the damage when a claim is made. This can lead to disputes with insurers and, in severe cases, may even put firms out of business. On average, buildings are covered for just 69% of the rebuild cost, representing a considerable shortfall in cover.

The situation is not just affecting businesses. It’s also estimated that owners of up to 580,000 UK homes worth more than £1m are also significantly underinsured.

RebuildCostASSESSMENT.com has produced an infographic highlighting its latest data around inaccurate buildings insurance, based on more than 11,000 property assessments over the past 12 months.

Do not be underinsured - Check your insurance policy is adequate.

Ask TMD Insurance about a review of your insurance package. Call 01992 703 000 or email: insurance@mcdonaghs.co.uk