Insurance Valuations Specialists
Insurance Valuations Specialists
Avoid the cost of under or over-insurance
Why care about declaring the correct insurable value?
Many Australian businesses may be underinsured when it comes to their physical assets. Outdated valuations, inaccurate assessments, and fluctuating market conditions can leave businesses vulnerable to significant financial risk in the event of loss or damage.
As part of a preliminary analysis, Lockton reviewed the coverage of 12 major organisations and found that over 50% were underinsured. This small-scale analysis has highlighted a potential trend that warranted further investigation on a larger scale.
Our Valuations Services team specialises in providing comprehensive and accurate insurance valuations for buildings, contents, plant, and equipment. In the current inflationary environment, where the costs of building materials and labour are rising significantly, regular insurance valuations are critical to reflect these increased costs and protect clients from financial exposure in the event of a claim.
Our Products and Services
Our Practice Areas:
Insurance Valuations for Buildings: Comprehensive reports to determine the appropriate replacement values and also outlining key information including removal of debris, planning and approvals, cost escalations and reinstatement periods.
Insurance Valuations for Contents, Plant, and Equipment: Replacement cost of contents, plant, and equipment, providing accurate valuations that reflect their current market value or optimised value.
Other Forms of Valuation: Other forms of valuation, including fair value assessments, considering factors such as depreciation, market trends, and asset condition. This service is essential for financial reporting, mergers and acquisitions, and strategic planning.
Why Choose Lockton Risk Consulting:
Minimise liabilities for stakeholders and directors
Ensure compliance and mitigate risk
Avoid co-insurance penalties caused by underinsurance
Maintain correct sums insured for full coverage
Secure appropriate reinstatement cover, from asset replacement to business resumption
Global connectivity
Key Contact
Stuart Taylor
National Manager - Valuation Services
Stuart.Taylor@lockton.com
+61 403 878 806
Get in touch
Questions? We'll guide you in the right direction.
Ask us about our products, services or anything else on your mind. Our insurance and risk specialists are here to help.
Talk to our teamInsurance Valuations FAQs
What is an Insurance Valuation?
An insurance valuation is a professional assessment of the reinstatement value of your assets. This process helps ensure that your insurance coverage accurately reflects the current cost to reinstate your property, equipment, and other assets.
What are the main factors contributing to underinsurance?
Many businesses unknowingly leave themselves exposed to financial risk due to: Infrequent valuations – asset values are not regularly reviewed. Reliance on outdated financial data, including: Depreciation schedules, Fixed asset registers, Valuations from past acquisitions. Fluctuations in foreign-sourced equipment costs, impacting replacement value. Exclusion of off-balance sheet assets, such as those under hire, lease, or loan agreements. Rising costs of labour and commodity-based products, affecting rebuild or replacement expenses. Global trade tariffs, which can increase import costs and impact insurance coverage.
Why are Insurance Valuations important?
There is often a discrepancy between the nominated values an organisation declares (which impacts the sum insured and sub-limits) and the correct insurable value of assets.
Why care about declaring the correct insurable value?
For example, in a high inflation climate, the costs of building materials and labour can increase significantly. Regular valuations account for these inflationary items, helping to ensure that the increased costs of materials and labour are reflected in your coverage. Regular valuations help you declare accurate insured values, so you can identify if you are underinsured or overinsured.
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