UNDERINSURANCE COSTS Rise as inflation bites

As inflation continues to run riot through the economy, many property owners may be very light on their rebuilding cover, should they need it.

This can lead to real gaps when it comes to paying for essential repairs and rebuilds if the worst happens.

At Q2, 2022, The Building Cost Information Service (BCIS) General Building Cost Index is now sitting at C.10.0%. It is expected to average 9.6% in 2022. 

Material shortages are creating problems with materials costs averaging over 20% inflation.

Some materials have seen huge increases such as imported timber (+70%) and structural steel sections (+60%), by summer 2022, due to a global increase in construction and supply issues caused by Covid.

A real shortage of materials and labour means that reinstating properties is not only more expensive but is now taking longer.


1. The building has not had a professional valuation within the last three years and/or hasn’t had the appropriate index linking applied.

2. The building is listed, made of quarried stone or certain non-standard construction methods.

3. The building is in a remote location or with restricted or difficult access.

4. The property is finished to a significantly higher standard than normal.

5. The property has modern eco-friendly construction or green energy features.

6. The Business Interruption indemnity period is only 12 months.

7. You haven’t factored in costs for outbuildings, car parks, driveways, gates, fences, boundary walls, paving or lighting.

8. You haven’t factored in costs such as professional fees, site clearance or access costs.

for a confidential chat about your property cover, and if it’s right for you, get in touch. We’re happy to talk.

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Use the Online form, call 08081753050 or email Mark at m.kreling@fdbltd.co.uk