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Most properties are insured but many are not insured accurately. Underinsurance is a common
issue. It occurs when the insured amount does not reflect the true cost to rebuild. Hurricanes get the
headlines but they are not the only risk. Fire, flood, and everyday incidents cause serious damage every
year. These are routine risks. They are what insurance is there for.
In the Cayman Islands, rebuild costs do not stand still. Import costs move. Labour availability changes. Contractor demand shifts. After a major event, all three can move quickly. A familiar pattern follows. A professional reinstatement cost assessment is carried out, it is then put away and each year, a percentage is added for inflation. That feels sensible but it is often not enough.
Professional guidance is clear in principle.
An assessment should be kept under review, but it should not be relied upon indefinitely. A full reassessment is needed from time-to-time and indexation does not replace a proper reassessment.
Costs do not move in a straight line. Indices do not reflect changes in specification, regulation, or market conditions. Damage does not need a major event to be significant. A fire can require a full rebuild. Flooding can mean extensive strip?out and replacement. If the assessment is out of date, the gap only becomes visible when a claim is made. By then, the shortfall sits with the owner. If your property has not been professionally reassessed in recent years, it is worth looking at this now.
CASE can assist in connecting property owners with experienced and suitably qualified Chartered Surveyors who can assess reinstatement cost and provide clear advice to support your insurance decisions.