Data from RebuildCostAssessment.com has found that as many as 85% of commercial properties in Huddersfield may be underinsured. In Northampton, the second town in the list, the figure was 77% while in Manchester, which came third, it was 76%. Across the 15 UK towns and cities assessed, the average commercial property underinsurance rate was above 60%. In the event of a claim, RebuildCostAssessment.com said the application of average for underinsured businesses could force them to cut operational budgets, take out loans, or face closure.

Johnny Thomson, marketing and communications director at RebuildCostASSESSMENT.com, said: “Commercial property or building insurance is a safeguard for businesses. It covers significant property damage risks such as fire, flooding and vandalism. But as is shown across our data findings, the common pitfall of underinsurance is experienced by a huge number of businesses and property owners.

“The financial impact of underinsurance can be crippling. It means that while you may be insured for a sum, the safeguard isn’t operating as it should if the worst happens.”