20 Apr 2018
BCIS has been working with the specialist valuation team at Ecclesiastical Insurance Group Plc, to create the Ecclesiastical Heritage Index (EHI).
The index tracks 61 different resources, which better reflect the traditional materials and skills involved in reinstating and restoring traditional buildings than BCIS’ other indices such as the General Building Cost Index (GBCI) and the House Rebuilding Cost Index (HRCI), which predominantly take in to account modern materials and methods of construction.
The resources and the model for the index were based on the analysis of examples of historic buildings of different construction.
Ecclesiastical is the UK’s leading insurer of Grade I listed buildings and insures ten of the UK’s World Heritage sites. It commissioned the new index to reduce the risk of underinsurance for owners of traditional properties (typically properties built before 1920 using traditional methods) throughout the term of their insurance policy.
Sums insured are based on rebuilding cost assessment undertaken by a specialist surveyor who understands the construction of the building. The index will be used to ensure that the sum insured remains as accurate as possible throughout the term of the insurance contract and between valuations.
BCIS produces a range of indices used by the construction, insurance and financial service sectors and are delighted to have produced the EHI in collaboration with Ecclesiastical.
For more information see BCIS inflation measurement and forecasting services.
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