Trying to determine a sum insured for commercial building cover can be an expensive exercise at best…or an inaccurate guesstimate at worst. But with CoreLogic’s new Cordell Commercial Estimator, rebuild costs can be estimated quicker and easier than ever – creating a better experience for NZ insurers, brokers and customers alike.
Until now, there’s been no quick and easy way to work out a sum insured for commercial building insurance. When property owners need to validate a rebuild estimate, they usually have to engage a quantity surveyor: a time-consuming and intensive process that could cost them upwards of $1500. Alternatively, they can estimate the rebuild themselves – a task that most owners don’t have the know-how to do effectively.
When insurers have to get a commercial valuation, they usually pass on this expense to the end-customer. This can deter prospective customers from switching insurers. Alternatively, the insurer could trust the customer’s own assessment, but this can turn out badly for everyone if the customer underestimates how much cover they actually need.
Given these challenges, it’s no wonder that sum insured values aren’t regularly updated for commercial properties, leaving many property owners at risk of being underinsured. But that’s set to change, thanks to a new digital tool from CoreLogic.
Power and simplicity
In early 2021, CoreLogic will launch Cordell Commercial Estimator: a brand new tool to help insurers and brokers determine appropriate sum-insured values for New Zealand commercial properties.
Powered by New Zealand’s most comprehensive building cost database, Cordell Commercial Estimator makes it easier than ever to assess rebuild costs and timeframes. Using regularly updated market prices sourced by Cordell’s highly experienced research team, the tool takes into account all potential costs including plant hire, demolition, building materials and labour.
Within minutes, Cordell Commercial Estimator calculates a sum-insured estimate. It can also generate a PDF report for the customer that includes:
- an estimated rebuild cost (including an inflationary provision)
- an potential rebuild timescale
- an indemnity value (which can be provided for calculating the Fire Service Levy if the last valuation date is supplied)
- the date of the most recent valuation
- any uploaded imagery, such as photos of the property.
The tool’s easy-to-use calculator also helps to recalculate rebuild estimates at renewal time, which can save time and money.
A better experience for everyone
If you’re an insurer or broker, Cordell Commercial Estimator will help you give your customers greater assurance about their cover. It can also support your sales team to have better conversations with prospects, and provide fast, fact-based quotes.
With the latest available rebuild data at their fingertips, brokers can speed up the renewal process and drive customer engagement through more meaningful conversations. Insurers can use the tool to identify cross-sell or up-sell opportunities; for instance, the purchase of business interruption cover.
Cordell Commercial Estimator also helps ensure each customer gets the right types and levels of cover to suit their needs. This helps to minimise underinsurance risks and improve the overall insurance experience.