Lamport Bassitt Solicitors - Legal News - Commercial property 'is underinsured'


	LATEST LATEST LEGAL NEWS ARCHIVE		LATEST NEWS & EVENTS Commercial property 'is underinsured' Occupants of commercial properties may be at risk of losing money, with new research suggesting that such buildings are lacking in cover. Figures produced by Aviva revealed that 77 per cent of professionally valued buildings were underinsured. The firm, which claims to be the world's fifth largest insurance group and to serve 50 million customers, noted that companies should include the costs of removing debris and architects' and surveyors' fees when they are establishing the level of cover needed. Its commercial property underwriting manager, Mark Dunham, suggested that the economic downturn is partly behind the rise in the number of underinsured buildings. He stated: "Although the recession has led to significant reductions in the market values of buildings in terms of what they can be bought and sold for, rebuilding costs have not reduced to the same degree." As the country's economy begins to show signs of growth, the cost of reinstating a building that has experienced damage is expected to rise, he suggested. Related Articles: 30/3/2012 - EPC changes to affect buy-to-let landlords 27/3/2012 - Rent increases drive strong buy-to-let yields 27/3/2012 - Property industry welcomes 'sensible' planning reforms 2/3/2012 - Arla advises landlords to 'invest wisely' 1/3/2012 - Basel III could hit commercial property lending More Property Law News