Don't neglect the cost of delay



Most insurance policies will cover the cost of repair and replacement following an insurance loss such as fire, theft, flood or storm damage. However, what these policies often do not cover is the costs involved as a result of the delay.

Claims can take time to settle, but if the claim is of a severe nature and occurs towards the end of the build, then the delay could be huge.

For example, if a building has taken nearly three years to build when a fire occurs, then it will take more than three years to rebuild, as demolition and site clearance will take into effect. So, this could result in a 3-4 year loss in anticipated rent and/or a 3-4 year delay in repaying any loans AND the additional finance costs as a result of this.

Could your business cope in this situation?

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Tags: construction | developers