Buildings and contents insurance

Farmer996

Member
Location
North East
We've been with the same broker for 12 years. One thing that puts me off shopping around is building valuations. We bought another property next door to ours 5 years ago and it came with some large sheds. The insurance company originally used the valuation report from the bank's surveyors to work out the re-build costs. The new premium seemed way over the top and a lot of it was down to the sheds so I paid £200 for a quantity surveyor to assess the re-build costs for everything, including the houses. His figures were quite a bit below what the insurance company were using and reduced the premium substantially.

Since then it has gone up every year and one of the reasons (according to the broker) is because the re-build costs go up with inflation. So the question is, what's the right way to go about this? Should I shop around on current insured values then get the QS out again? Or get the QS out then shop around? It's another £200 but the premium is is a significant 4 figure sum so if if saves me at least £200 then it's worthwhile. Or am I going about this the wrong way??
 
Hi it is true the sum insured increases each year automatically but it is also true that it is your responsibility to ensure the figure is correct.
You do not have to accept the increases placed and just tell your broker that you wish the declared values to be as they were originally.
We usually recommend a valuation every three to five years so I would suggest talking with your broker. They may be able to assist you by covering the cost as a thank you for being loyal? Worth asking. I would certainly do so if you were my client.
There is also the option of a “desktop” review if you are able to send clear photos and measurements to a surveyor.
But either way I would get the figures right as it is important. Whether you shop around and use current figures and then update them after it doesn’t really matter as you would just receive a refund if lower numbers.
 

Farmer996

Member
Location
North East
Hi it is true the sum insured increases each year automatically but it is also true that it is your responsibility to ensure the figure is correct.
You do not have to accept the increases placed and just tell your broker that you wish the declared values to be as they were originally.
We usually recommend a valuation every three to five years so I would suggest talking with your broker. They may be able to assist you by covering the cost as a thank you for being loyal? Worth asking. I would certainly do so if you were my client.
There is also the option of a “desktop” review if you are able to send clear photos and measurements to a surveyor.
But either way I would get the figures right as it is important. Whether you shop around and use current figures and then update them after it doesn’t really matter as you would just receive a refund if lower numbers.
Thanks for the advice. I will go back to the broker in the first instance. Do you agree that it can make a big difference to premiums?
 

Farmer996

Member
Location
North East
Yes it does as your insurer is charging you an overall rate. Say 3% for the buildings section of your policy. So if your overall totalled up sum insured is less then you will pay less.
I seem to remember it making a much bigger difference but then most of our policy is buildings and contents so maybe that's why. No machinery or produce insured.Just some loss of income (livery & other rent) and public liability. Thanks..
 
Last edited:
We've been with the same broker for 12 years. One thing that puts me off shopping around is building valuations. We bought another property next door to ours 5 years ago and it came with some large sheds. The insurance company originally used the valuation report from the bank's surveyors to work out the re-build costs. The new premium seemed way over the top and a lot of it was down to the sheds so I paid £200 for a quantity surveyor to assess the re-build costs for everything, including the houses. His figures were quite a bit below what the insurance company were using and reduced the premium substantially.

Since then it has gone up every year and one of the reasons (according to the broker) is because the re-build costs go up with inflation. So the question is, what's the right way to go about this? Should I shop around on current insured values then get the QS out again? Or get the QS out then shop around? It's another £200 but the premium is is a significant 4 figure sum so if if saves me at least £200 then it's worthwhile. Or am I going about this the wrong way??
I've no idea if it's true but we were told to allow £70 per square metre for modern metal sheds and £200/m2 for stone. Then we added a % because it costs to bring materials to a remote place.
However, we're on a much smaller scale than you. On a big farm a small % error would put you way out & compared to the size of your premium, I'd get it professionally assessed every few years if it was me.
 

Farmer996

Member
Location
North East
I've no idea if it's true but we were told to allow £70 per square metre for modern metal sheds and £200/m2 for stone. Then we added a % because it costs to bring materials to a remote place.
However, we're on a much smaller scale than you. On a big farm a small % error would put you way out & compared to the size of your premium, I'd get it professionally assessed every few years if it was me.
Should that be £70 per square foot? One works out at £47 per sq/ft and the other is £56 per sq/ft (in square metres it's £510 and £604 respectively). But then I was never great at maths! The sheds are almost 50 years old and in poor condition so I'm not sure if that makes a difference. They are steel frame, block walls and asbestos roof. I guess they'd have to be re-built in the unlikely event they burn or fall down. I probably wouldn't have insured them but the bank insisted as part of the loan agreement.
 
Should that be £70 per square foot? One works out at £47 per sq/ft and the other is £56 per sq/ft (in square metres it's £510 and £604 respectively). But then I was never great at maths! The sheds are almost 50 years old and in poor condition so I'm not sure if that makes a difference. They are steel frame, block walls and asbestos roof. I guess they'd have to be re-built in the unlikely event they burn or fall down. I probably wouldn't have insured them but the bank insisted as part of the loan agreement.
No, definitely metres.
One much bigger than the other because you are meant to budget for rebuilding stone buildings in stone because stone outbuildings have conversion potential therefore an asset . Just what we were told when ringing round.
 

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Red Tractor drops launch of green farming scheme amid anger from farmers

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As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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