The Small Step That Saves Millions: Insurance Valuations Done Right

Why Getting It Right Matters

1. Avoiding Underinsurance

This is one of the most common (and costly) mistakes. If your asset is insured for less than its true value, you may only receive a fraction of your claim. Insurers typically apply something called the average clause, meaning if your coverage is only 70% of the replacement value, you might only receive 70% of the payout. That shortfall can be financially devastating.

2. Preventing Overinsurance

On the flip side, overestimating asset value means unnecessarily high premiums. While it might feel like "playing it safe," insurance won’t pay more than the actual loss, so you’re essentially paying more for no added benefit.

3. Faster, Smoother Claims

An up-to-date, professional valuation provides a solid foundation for claim settlements. It reduces back-and-forth, avoids disputes, and helps you get what you’re owed, quickly and with less stress.

4. Staying Compliant

Many lenders, insurers, and regulators require up-to-date valuations as part of financing agreements or risk management protocols. Keeping yours current helps you stay on the right side of compliance and maintain strong relationships with financial institutions.

5. Keeping Up with Change

Markets shift, inflation rises, and assets evolve. What was accurate three years ago could now be wildly off. That’s why periodic revaluations, typically every 1 to 3 years are key to keeping your coverage relevant and reliable.

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What Needs to Be Valued?

You might be surprised by how broad the list is. Here are some common examples:

· Commercial properties (factories, offices, retail premises)

· Residential properties, especially heritage or high-value homes

· Business assets, such as machinery, stock, and equipment

· Fine art, jewellery, antiques, and collectibles

· Specialised vehicles like classic cars or commercial fleets

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Getting it Right: Tips for Policyholders

· Use accredited valuers who understand the specific asset class.

· Update your valuations regularly, especially after renovations, purchases, or market shifts.

· Keep records of changes and upgrades to support revaluations.

· Work closely with your insurer to ensure valuations are accurately reflected in your policy.

“Insurance is meant to give you peace of mind, not create more uncertainty,” says Andrew Brenton, Head of Building Surveying, CSQ. “And without a proper valuation, you risk being left exposed just when you need support the most.”

Insurance valuations may seem like a formality, but in reality, they’re one of the most powerful tools for ensuring your protection works when it really counts. It's not just about numbers, it's about security, confidence, and smart risk management.

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Why CSQ?

 At CSQ, we’ve become the go-to insurance valuation partner for some of the region’s largest and most prestigious asset owners, having valued over AED 100 billion worth of property in the last five years alone. From super-luxury resorts and theme parks to iconic towers and heritage sites, our portfolio spans some of the most recognised buildings across the UAE and beyond.

Our team includes Chartered Building Surveyors and experienced Cost Consultants, combining deep technical expertise with practical market insight. We understand the nuances of different asset classes, regional cost dynamics, and the importance of precision when it comes to risk protection.

Whether you're managing a single property or a large portfolio, we help ensure your coverage is grounded in reality, so when the unexpected happens, you're not caught off guard.

Want peace of mind backed by real value?
Get in touch with our team today.