Underinsurance in the gun trade

What underinsurance means

Underinsurance happens when a building or asset is insured for less than it would actually cost to reinstate it after a loss. In practice, it means the level of cover in place simply isn’t enough to put things right if something goes wrong.

For gun trade businesses, where specialist buildings, stock, and equipment are central to operations, getting valuations right is essential.

Why it matters to gun trade businesses

Recent data from Barrett Corp & Harrington (BCH) shows how widespread the issue is. Between 2022 and 2023, 64 per cent of buildings used for sporting pursuits were underinsured, meaning three in five policyholders would have faced a significant financial shortfall if they needed to reinstate their building after a loss.

This mirrors the wider UK picture, where BCH found 67 per cent of all buildings to be underinsured in Q3 2023. But for sporting and gun trade properties, the scale of underinsurance is often even more pronounced. BCH recommended an average 74 per cent increase to the reinstatement value of sports buildings.

To put that into context: A building insured for £300,000 could require a reinstatement value of £522,000. In the event of a total loss, that would leave a £222,000 gap – a financial hit that few businesses could absorb.

When a property is underinsured, insurers may apply the Condition of Average, reducing any claim in proportion to the level of underinsurance. In some cases, if the risk wasn’t fairly presented, the policy could even be voided.

This is why accurate valuations matter – they protect your business from unexpected and potentially devastating costs.

Our valuation partner

We work closely with Barrett Corp & Harrington (BCH) – a specialist buildings insurance valuation service that provides tailored assessments for every customer, property, and policy.

In 2023 alone, BCH’s surveys for Howden clients identified recommended increases that would have prevented over £913 million of underinsurance entering the UK insurance market. Of the valuations carried out for Howden policyholders, 69 per cent would have been underinsured, with an average recommended uplift of 61 per cent.

This partnership helps ensure our clients have the right protection in place – a key part of our commitment to providing positively personal advice that genuinely supports your business.

gun barrels

Valuation services to protect your assets

We offer two types of building insurance valuation services to help ensure your assets are correctly insured and your cover reflects real world reinstatement costs. Both options help ensure your cover is accurate, up to date, and aligned with the true value of your assets – reducing the risk of underinsurance and giving you confidence that your business is properly protected.

  • Benchmark eValuation

    An online valuation for single buildings, carried out without the need for a site visit. Cost: £105 + VAT

  • Building Insurance Reinstatement Cost Assessment (RCA)

    A traditional, on site valuation suitable for single or multiple buildings. Costs vary depending on property type and size.

Benchmark eValuation

Please see below for further details of each solution.

Benchmark eValuation is a fast, affordable, desk‑based way to establish an accurate rebuild value for your property. It offers a virtual alternative to a full site‑based Reinstatement Cost Assessment (RCA), typically saving at least 80 per cent of the cost while still delivering a high level of accuracy.

Each eValuation is designed to estimate the true reinstatement sum insured to within 10 per cent of a surveyor’s full physical assessment. Reports are delivered within 72 hours of instruction and are based on:

  • Access information
  • Digital planning data
  • Details you provide
  • The latest digital mapping data
  • Property location

This service is supported by major insurers and can be used to secure an average waiver guarantee.

Cost: £105 + VAT

The desktop eValuation is ideal for clients who haven’t had a professional building valuation in the past 12 months and need a quick, reliable update. It’s suitable for single buildings only, with the following maximum Building Declared Values:

  • Commercial property: up to £7.5m
  • Residential property: up to £2m

The service can also be used for properties listed up to Grade II. (Grade I and Grade II* buildings require a physical RCA, which we can also arrange.)

Starting your eValuation takes you to a dedicated Howden page on the BCH website, where you can provide the information needed for an accurate assessment.

Start your evaluation here.

Building Insurance Reinstatement Cost Assessment (RCA)

A Reinstatement Cost Assessment (RCA) is a traditional, on‑site building valuation carried out by a qualified professional. It provides an accurate reinstatement sum insured based on a full physical inspection of the property and its surroundings. This “boots on the ground” approach is supported by major insurers for average waiver guarantees and is fully compliant with Royal Institution of Chartered Surveyors (RICS) standards.

An RCA gives you the highest level of certainty – especially important for complex, historic, or high‑value buildings where accuracy matters most.

This service is designed for clients who haven’t had a professional valuation in the last 12 months or who need a detailed assessment of one or more buildings. It’s suitable for:

  • Single buildings
  • Multiple‑building sites
  • Properties with unique features or higher reinstatement complexity

It’s also the recommended option for Grade I and Grade II* listed buildings, where specialist knowledge and a physical inspection are essential.

These questions can help identify whether a property may be incorrectly valued or would benefit from a full RCA:

  • Has a professional reinstatement assessment been completed in the last 12 months?
  • Has the cost of building materials changed significantly since your last valuation?
  • Does the property include extensive external areas such as yards, car parks, or gardens?
  • Has the building been altered, extended, or refurbished recently?
  • Does it include new eco‑friendly features or modern construction methods?
  • Have changes in building regulations been factored into your current valuation?
  • Is the property difficult to access (e.g., town‑centre locations, terraced buildings)?
  • Is the market value being used instead of a true reinstatement value?
  • Is the property listed?
  • Is the building older, where reinstatement costs are typically higher?

If the answer to any of these is “yes”, a physical RCA is likely to provide a more accurate and reliable reinstatement figure.

Current declared valueMaximum fee (plus VAT)
<£1m£490
<£2.5m£680
<£5m£880
<£10m£1,460
<£15m£1,950
<£20m£2,340
>£20mPrice on application

Number of flatsMaximum fee (plus VAT)Discounted fee per flat (plus VAT)
<5£365–
<20£400–
<75£400£20
<100£1,500£17.50
<150£1,750£12.50
<350£1,875£10.50
>350£3,675Price on application

Contact us for more information

Request a Quote

Please complete the form below and we'll get in touch.

Have you had any claims in the last 5 years?
to accept the privacy policy.