911ÖÆÆ·

Finding suitable insurance includes more than just reading a list of risks covered by a policy. The amount you’re covered for is also important. Would you know if your organisation’s assets, including the buildings, are underinsured?

Gallagher, our official club insurance partner, has highlighted the importance of a regular insurance review to help ensure clubs and training centres are protected.

Economic changes can lead to underinsurance - are you still suitably protected?

The rates of inflation over recent years, the disruption to the supply chains, and other external factors in the UK, have had an impact on property rebuild costs.

Whilst the rate of inflation has reduced, it’s important to consider inflation over the last 2-3 years, especially if an insurance review or professional valuation hasn’t happened in the last 12 months.

How does underinsurance happen? 

Underinsurance happens when the sums insured don’t reflect the true value of an organisation’s assets (e.g. the club or training centre buildings and contents, stock, and business interruption).

When it comes to property underinsurance, this typically occurs when buildings valuations are out of date or incorrectly valued and the insurance purchased does not reflect the total rebuild cost. This is a common area of underinsurance because building materials and labour costs can constantly change. 

What are the implications of underinsurance? 

If you are underinsured, your insurer may refer to an average clause in the policy when resolving a claim. For example, if you take out buildings and contents insurance that will cover you for up to £50,000 but it costs £100,000 to rebuild or replace your property or its contents, then you would be underinsured by £50,000 (or 50%). Therefore, any claims you make would reflect this average and only pay out 50% of the claim, leaving you to fund the deficit. This could be financially catastrophic to a club or training centre. 

How can I ensure my organisation has suitable cover?

Have a professional property rebuild valuation – a Reinstatement Cost Assessment (RCA) - carried out by a RICS qualified valuation surveyor to determine your actual rebuild costs. It’s also vital that you regularly assess and update your contents/stock values and levels. Professional valuers should consider all factors and will normally advise on what is necessary to reflect price increases during a rebuild period. The options to perform a reinstatement cost assessment include:

• An onsite assessment
• An onsite sampling exercise of typical properties within a portfolio
• A desktop assessment
• A combination of the above

Desktop solutions can be cost effective where:

• The footprint of the building is easily identified using digital mapping tools
• The property is not listed or not a complex construction
• Buildings that don’t have basements, cellars or underground car parks

Tips to reduce your risk of underinsurance

Take time to fully evaluate risk exposure, ensuring that cover is up to date and sums insured are adequate - many organisations don’t realise they’re underinsured until it’s too late.

Here are some actions clubs and training centres can take to help avoid underinsurance:

• Regularly review your insurance, including your sums insured, and identify any other changes in the business that may impact your cover levels.
• Get an up-to-date buildings insurance reinstatement cost valuation. This should reflect the total rebuild cost of the property—not its market value— and we recommend these are carried out by a qualified professional.
• Consider whether your business interruption indemnity periods are still sufficient, given the potential for longer delays to building repair projects.
• Speak to your insurance broker who will be able to review your cover in line with your actual risk. Some brokers, like Gallagher, can also arrange your buildings survey for you. 
• Purchase a policy (such as the Gallagher 911ÖÆÆ·Combined product) which includes an automatic day-one uplift extension. This extension provides an automatic increase in your declared value in the event of a partial or total loss claim. The Gallagher 911ÖÆÆ·policy adds 15% to your declared sum insured, at no additional cost and provides an additional layer of security in the event that the level of inflation changes significantly during the period of insurance.  

Finding suitable insurance

As the RYA’s official Club Insurance partner, Gallagher has been endorsed by us for over 40 years, providing specialist products to meet the needs of RYA-affiliated clubs, recognised training centres and affiliated organisations.

To find out more about how Gallagher can help you and for further insurance questions, contact the specialist 911ÖÆÆ·Gallagher team.

Call: 0800 612 2282
Email: rya@ajg.com

Information last updated: 04/12/2025

The sole purpose of this article is to provide information on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited and Royal Yachting Association accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.

Royal Yachting Association is an Introducer Appointed Representative of Arthur J. Gallagher Insurance Brokers Limited which is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 55 Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909. AR61-2024.