Working together with our clients, If Insurance encourages customers to include the price increases in the valuation when calculating their values.
“Although the values set in the insurance contract are inherently based on an estimate, it can be qualified by either contacting the insurance company's experts or in consultation with suppliers and advisers. You can also buy highly qualified assessments from consulting firms that specialise in this area,” says Kristine B. Wagner.
If Insurance regularly undertakes the valuation of buildings, equipment and facilities, but this is not always practically possible on all insurance policies. Therefore, it is normal for clients to value their assets themselves, and then utilise the insurance company to secure a second opinion on the largest total values.
According to Denmark's Business Statistics Tendency Survey, production restrictions have risen to the highest level ever witnessed in industry due to a shortage of materials and equipment. Arguably, the shortage in construction materials has not been greater since the years leading up to the financial crisis.
The price increases are, in part, due to the aftermath of the coronavirus pandemic. Firstly, the demand for building materials in connection with the renovation, conversion and extension of private homes has increased significantly. In addition, the supply of construction products has declined, partly because supply chains have experienced delays in securing materials due to closed ports and borders.