Commercial Finance Specialists

A specialist valuer estimates that more than three-quarters of commercial buildings may not be properly insured.

People seeking sources of finance for commercial property investment should review their insurance to make sure their buildings are adequately covered, Aviva has recommended.

Barrett Corp and Harrington, a specialist valuer working with Aviva, said that more than three-quarters (77 per cent) of buildings are found to be underinsured, with an average deficit of 55 per cent.

Mark Durham, commercial property underwriting manager at Aviva, said that as the UK emerges from the downturn, the cost of repairing a building from unexpected disasters is likely to rise.

"Although the recession has led to significant reductions in the market values of buildings in terms of what they can be bought and sold for, rebuilding costs have not reduced to the same degree," he added.

Last month, the insurer warned commercial property owners to prepare themselves for a further rise in vacant retail units, which may put them at risk of malicious damage.