‘Reinstatement' means repairing or replacing a building to the same specifications as before it was damaged - essentially, a like-for-like replacement. If the property was four storeys high and constructed of bricks and mortar, then it would be rebuilt to those specifications. In most situations this is perfectly suitable; but what if there was a better way of doing things at no extra cost? Should insurers insist on a like-for-like reinstatement where there is an opportunity to reduce future risk, or where the customer may benefit from a different solution?
This article studies how reinstatement can present opportunities to make some sensible changes that can help manage future risk. With new methods and materials constantly emerging, some improvements can be made with little additional expense, or none at all.
• The value of adding adaption clauses to real estate customers' policies.
• Applying modern fire engineering techniques to property repairs and rebuilds.
• Achieving construction and energy efficiency gains during the rebuild process.
• Complying with local regulations on refurbishments.
• Meeting customer needs.