The Relationship Between Building Reports and Insurance Companies

When thinking about building reports, most people typically associate them with the buying or selling of a property. However, what many may not realise is that these reports are also highly relevant in dealings with insurance companies. In fact, there are several situations where having a detailed building report can be essential for obtaining or adjusting your insurance coverage. Understanding these scenarios can help you navigate the insurance process more smoothly and ensure that you’re adequately protected.

Building Reports During the Buying Process

One of the most common times a building report becomes necessary is during the process of purchasing a home. While it’s widely understood that a building report might be needed to secure financing from a lender, it’s less commonly known that insurance companies may also require one. If you’re buying a property in an area with a history of natural events, such as earthquakes, the insurance company might ask for a building report to assess the current state of the property. This is particularly relevant in areas where there has been an EQC (Earthquake Commission) claim. In such cases, the insurer may require a sign-off from a building inspector to confirm whether the repairs from the EQC claim have been completed satisfactorily. This extra step helps the insurer manage their risk and provides you with peace of mind that the home is insurable.

Adjusting Your Insurance Policy

Another situation where a building report might be required is when you’re looking to make changes to your existing insurance policy. Perhaps you’re considering increasing or decreasing the sum insured value, or maybe you want to add more inclusions to your policy. In these cases, your insurance provider may request a new building report to ensure that the updated coverage accurately reflects the current condition and value of your property. This is particularly important if significant renovations or changes have been made to the home since the last report. By providing an up-to-date building report, you can help ensure that your insurance policy remains accurate and comprehensive.

Shopping Around for Insurance

In today’s market, it’s not uncommon for homeowners to shop around for better insurance deals as a way to save money. If you’re thinking of switching insurance companies, be prepared for the new insurer to request a building report. Insurance companies use these reports to assess the condition of the property they are considering covering. This helps them understand any potential risks and allows them to offer you a competitive quote that accurately reflects the property’s condition. Having a detailed, recent building report can make the process of switching insurers smoother and may even help you secure a better rate.

How Red LBP Can Help

These scenarios highlight how important building reports can be, not just during the buying process, but throughout the life of your insurance policy. At Red LBP, we’ve stepped in to assist clients in these situations many times, even though the need for such reports might not be common knowledge. Whether you’re buying a new home, adjusting your current policy, or considering switching insurers, having a thorough building report can be invaluable.

In conclusion, while building reports are often thought of as tools for buyers and sellers, their role in securing and maintaining insurance should not be underestimated. Being proactive and obtaining a detailed report when needed can save you time, money, and stress down the line. At Red LBP, we’re here to help you navigate these requirements and ensure that you’re fully prepared, no matter what your insurance needs may be.