Everyone loves a bargain.
In fact, research commissioned through PayPal suggests that some 70% of Brits will spend hours looking for reduced rates and discounts just for the simple satisfaction of making a saving.
And whilst there’s no escaping that shopping for property insurance isn’t quite as thrilling as buying the latest tech release or bagging a last-minute holiday, the desire to save is still keen.
Trouble is, the only real way to appreciate the value of an investment is to understand exactly what it is you’re paying for.
That’s where we can help.
At Rigby Financial, we believe you should always feel like you’re getting value for your money, which is why we take the time to explain the key factors that can influence the cost of property insurance below.
Read on to discover more, or to chat in detail, contact the team.
What is property insurance?
Property insurance is the umbrella term for a number of insurance covers – including commercial building insurance and landlords’ insurance – that aim to protect you in the event of a problem with the building you own.
It will cover your costs in the event of damage to or total loss of your property. You can also choose to increase your cover with the addition of optional extras, such as loss of rent and landlords’ contents.
What can influence the price?
· Property type
Warehouse, mill, office block, or single unit – the type of property in question is probably the single biggest factor in the overall cost of your policy.
Why? Because different types of properties carry different levels of risk, For instance, a commercial property might have higher risks associated due to higher foot traffic and more valuable contents compared to a residential property.
· Property size and reinstatement value
When it comes to property insurance, size matters.
And so does the reinstatement value.
For example, there can be a significant cost differential between replacing a two-up, two-down rental property and a shopping centre complex.
It’s crucial that the reinstatement value is accurate. This will cover the rebuild, architectural costs, and the fund the removal of any debris, etc.
If the reinstatement value isn’t correct, you risk being under-insured, which may have disastrous consequences. Read our recent blog on the perils of underinsurance to find out more.
· Age and construction
The age of a building – and its construction – can also impact the bottom line of your policy.
Generally, older buildings carry more risk, as the older structures get, the more likely they are to need repair.
Newer properties not only benefit from modern building techniques and adhere to current safety legislation, but they are also typically built using fire-resistant materials – such as concrete or steel – helping to reduce the threat of fire and qualify for lower premiums.
· Tenancy type
Who is occupying your property? How is it being used?
Two crucial questions used to establish the cost of any property insurance policy.
For example, a warehouse storing toxic chemicals or highly flammable liquids will naturally be rated more highly than a corner shop stocking newspapers and ice cream, or a small office.
Likewise, factors such as whether your building has single or multiple occupancy need to be assessed.
Being clear on who – and what – is in your building will help to ensure an accurate price.
· Location, location, location
Exactly where your property is located is another key factor.
Premises in high-risk areas – such as flood zones or coastal or mining areas – or in an area identified as suffering from a high crime rate, will result in premiums being more heavily loaded due to the greater risk of damage, be that through natural disaster, theft, or vandalism.
· Security and safety
There are things you can do to help bring costs down. Implementing good security measures with CCTV cameras and intruder alarms, alongside detailed fire risk assessments and deterrents like fire curtains, can all have a positive impact.
Reducing risk, and in turn, reducing your premium.
· Your claims history
Not your first time claiming? A track record of frequent or significant claims can present your property as a greater risk and increase your premium.
If you have a good claims history, this will be viewed more favourably, helping to keep costs down.
Guaranteed value with our expert help
Want to feel confident you’re getting value for money? Then get in touch.
At Rigby Financial, we do the hard work so you don’t have to – searching the market for the best cover and most competitive rates.
Choose us as your broker for property insurance, and not only will we source the best deals, but we’ll also be on hand to offer expert help and advice whenever you need it.
Selling up? Problems with tenants? Need to make a claim? We’ll guide you through the process, making it as smooth and hassle-free as possible.
Now, if that’s not a sign of money well spent, we don’t know what is.
To find out more, visit the property insurance area of our website or contact the team today.