How to effectively estimate commercial rebuild costs

At its core, commercial property insurance is a promise: if a business suffers losses through damage to its premises, the insurer will help restore it to its former state. But that promise relies on a realistic assessment of rebuilding costs. Miscalculating these costs affects entire chains of risk transfer.

The stakes are high: an underestimated rebuild value can leave businesses financially exposed, while overestimation inflates premiums and damages competitiveness. And in a competitive commercial property market, offering accurate, timely, and data-driven rebuild valuations and risk assessments can make all the difference.

This eBook explores the importance of accurate rebuild cost estimation, analyses the factors driving underinsurance across the UK, and provides recommendations for insurers to best equip themselves with the tools and insights to close the gap.

It draws on Verisk’s decades of experience in data, analytics, and risk management to provide practical guidance and real-world strategies for insurers to deliver better outcomes for their clients and their portfolios.

Topics covered include:
• How widespread is underinsurance?
• What is driving underinsurance?
• Commercial rebuild cost insights.
• Practical tips for accurate rebuild estimation.