10 May 2016Gallagher teams up with Cardinus to neutralize underinsurance risk
Arthur J. Gallagher has partnered with independent specialist Cardinus Risk Management to offer its commercial property and property investor clients a cost-effective nationwide service that will help eradicate the risk of underinsurance and its far-reaching consequences.
With figures revealing that almost 80% of commercial properties in the UK could be underinsured by as much as 60%[i], Gallagher has teamed up with Cardinus to provide property owner clients across the UK with easy access to consistent, quality building insurance valuation surveys that will ensure their assets are adequately protected.
Greg Spiteri, National Practice Leader for Real Estate at Arthur J. Gallagher, said: “As the costs of rebuilding continue to rise, we need to ensure our property owner clients have all the tools and support they need to counter the risk of underinsurance, prevent any reduction in claims payment through ‘averaging’ and secure settlement as quickly as possible.
“When property assets are underinsured, it’s not just a shortfall in coverage for repair and rebuild costs that the owner faces in the event of a claim. Underinsurance exposes them to a raft of interconnected consequences. If funds aren’t available to complete the rebuild, increased borrowing may be required or the rebuild period extended with all the associated negative impacts on balance sheet. Tenants could even see themselves dispossessed and the owner exposed to legal action from lenders and leaseholders as a result of the inadequate levels of insurance cover, bringing brand and reputational damage into the equation too.
“With its UK-wide network of professionally trained surveyors and consultants, and more than 20 years’ experience specialising in building valuation surveys, Cardinus was the natural choice of partner to support our own national network of more than 50 client-facing branches with an independent quality service.”
James Truscott, Chairman of Cardinus Risk Management, added: “We’re delighted to partner with Arthur J. Gallagher and help ensure its thousands of property owner clients neutralize the risk of underinsurance. Undertaking regular professional insurance valuations can also deliver other important benefits, such as improved borrowing facilities based upon increased asset values, and we look forward to working together to the ultimate advantage of property owners.”
[i] The Building Cost Information Service, part of the Royal Institution of Chartered Surveyors