Building insurance cover in the pandemic

Discussion in 'Property Management' started by Burramys, 6th Aug, 2021.

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  1. Burramys

    Burramys Well-Known Member

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    A few years ago I had my properties surveyed for insurance purposes. The amount included worst case - demolition, plans, permits, rebuild, accommodation, etc. The pandemic and a timber shortage has meant that it will probably take longer and cost more to rebuild. Should the cover be increased above the surveyed amount, and if so, roughly how much should this be?
     
    Burramys, 6th Aug, 2021
    #1
  2. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    I personally would not bother, however, I'm thinking 10% will cover it.
     
    Colin Rice, 6th Aug, 2021
    #2
  3. Tom Rivera

    Tom Rivera Property Manager Business Member

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    I would guess 99% of people aren't aware of this and haven't bothered to increase their building cover, but you're onto a point- construction costs have gone up by at least 15% in the last six months! The average 4-Bed Investment Grade house used to be a $220,000 build, you're now looking at $250,000+ for the same thing.
     
    Tom Rivera, 7th Aug, 2021
    #3
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  4. Burramys

    Burramys Well-Known Member

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    Melbourne
    Thanks. The cost of an extra 10-20% for insurance is not much, and I'll look at this when the renewal is due.
     
    Burramys, 7th Aug, 2021
    #4