Inflation impacting insurer access to builders

Loss adjuster Woodgate & Clark has published a commercial property report urging insurers and builders to forge closer working relationships to help manage the impact of supply shortages and inflation on the price of materials.

Nick Turner, senior surveyor at Woodgate & Clark and author of the report, said builders cannot afford to risk losing money on materials and said there was a risk of firms turning away from insurance sector work if contracts carried such risks.

He said: “Without flexibility in their approach to materials costs, insurers and loss adjusters may struggle to find builders willing to undertake policyholders’ building repair requirements following a claim.”

He added: “It may also be practical to tender the labour and plant element and work with a materials budget which is adjusted as materials are secured. Whatever solution is used, the adjuster should look at how they calculate their reserves for building repairs and take action to ensure that it is as accurate as possible.”

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