Having a central, organised repository of building information can be the difference between smooth sailing and a logistical nightmare when it comes to insurance. Whether you’re a building owner trying to avoid costly underinsurance or an underwriter assessing risk, good building data saves time, money, and headaches. Let’s break down how this works and why it’s so important.
Why Building Information Matters in Insurance
Insurance thrives on good data. Yet too often, building information is scattered across email inboxes, filing cabinets, or outdated systems. This creates avoidable headaches for everyone involved—owners, brokers, and insurers alike. Some of the most common issues include:
Underinsurance: Did you know 80% of UK commercial properties are underinsured? That’s according to the Building Cost Information Service (BCIS), and it means owners face huge shortfalls when claims arise.
Overinsurance: On the flip side, some properties pay for more coverage than they need due to outdated or inaccurate valuations.
Claims Delays: The Chartered Institute of Loss Adjusters (CILA) reports that 40% of property claims are delayed or disputed because of poor documentation.
These problems cost time and money. Worse, they can lead to serious financial and operational risks when things go wrong.
How Organised Building Information Helps
For Building Owners and Operators
1. Avoiding Underinsurance Pitfalls
Underinsurance can be catastrophic. BCIS highlights that properties are typically undervalued by 20-30%, leaving owners without the funds they need to rebuild or repair. With organised data—like structural surveys and accurate floor plans—owners can ensure their properties are properly valued and covered.
2. Securing Better Premiums
If you can prove that you’ve installed state-of-the-art fire alarms or regularly maintained your HVAC systems, you’re showing insurers that your building is low-risk. That often translates to lower premiums. Insurers reward transparency and proactive risk management, and organised records make it easy to demonstrate both.
3. Faster Claims Payouts
No one wants to be stuck waiting months for a claim to be processed. When all your building information—maintenance logs, fire safety certificates, warranties—is in one place, it’s far easier to provide insurers with what they need, when they need it.
For Insurers and Brokers
1. Sharper Underwriting Decisions
Underwriters need a clear picture to price policies accurately. They assess replacement costs, risk factors (like flood zones), and historical claims. Organised building data ensures they get the full story, reducing the guesswork that leads to overly conservative or inaccurate pricing.
2. Efficiency Gains
Every missing document or unclear detail adds time and cost. A centralised repository of building information cuts down on these inefficiencies, allowing brokers and insurers to focus on value-added services instead of chasing paperwork.
3. Reducing Fraud
Fraud is a big issue in the insurance sector, costing the UK industry £1.2 billion annually, according to the ABI. Timestamped, accurate building data can help validate claims quickly and reduce fraudulent activity, protecting both insurers and honest clients.
For Other Stakeholders
1. Contractors and Surveyors
Accurate building information isn’t just helpful for insurers—it’s vital for anyone working on the property. Organised records mean contractors and surveyors can work from the right data, avoiding costly mistakes and delays.
2. Regulators and Compliance Teams
Meeting regulatory requirements, like the Building Safety Act’s ‘golden thread’, becomes much easier with organised data. This also reassures insurers that buildings meet essential safety standards, which can influence coverage decisions.
Why Good Data Matters
Underwriters have a tough job. They need to evaluate a building’s replacement cost, potential risks, and history of claims. Here’s how organised building information makes their lives easier:
Replacement Cost: Accurate data on a building’s materials, dimensions, and construction ensures underwriters set realistic coverage levels, avoiding both under- and overinsurance.
Risk Factors: Maintenance records, safety certifications, and environmental risk assessments help underwriters quantify risks more precisely.
Claims History: Comprehensive records allow underwriters to spot patterns or recurring issues, ensuring better decision-making.
Without good data, underwriters are flying blind. Organised building information provides the clarity they need to do their job well.
The Need for Change
The numbers speak for themselves:
Underinsurance Costs: UK properties face a collective shortfall of over £15 billion annually due to underinsurance (BCIS).
Claims Delays: Poor documentation adds an average of 12 weeks to claims resolution timelines (CILA).
Fraud Reduction: Insurers using detailed building records saw a 10% improvement in fraud detection (ABI).
These figures highlight just how much room there is for improvement—and how organised building information can make a difference.
Imagine a property owner with a portfolio of buildings. They centralise all their records in a digital platform, including maintenance logs, safety certificates, and historical claims data. Here’s what happens:
Premium Reductions: Demonstrating proactive risk management leads to a 15% drop in insurance costs.
Faster Claims: Claims are resolved 30% quicker because all required documents are available instantly.
Better Relationships: Brokers appreciate the transparency and efficiency, strengthening the partnership.
This isn’t just hypothetical—it’s the kind of outcome many building owners are already achieving by embracing digital solutions.
Conclusion
Organised building information isn’t just about ticking compliance boxes; it’s about transforming how we approach insurance. Whether you’re a building owner looking to optimise your coverage or an underwriter trying to price policies more accurately, the benefits are clear.
At Building Passport, we’re here to help you take control of your building data. With our platform, you can reduce risks, save money, and unlock better insurance outcomes. Want to learn more? Visit our website today.
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