Reinstatement Cost Assessment (Insurance Valuation) delivered by RICS Approved Surveyors for insurance purposes
Insurance valuation is also known as the reinstatement cost or rebuilding cost or reconstruction cost assessment. The purpose of insurance evaluation is to provide professional evaluation of the costs associated with demolition and reconstruction of the asset in the event of the total loss and damage due to fire or another catastrophic event.
Our RICS Approved Surveyors provide professional advice on the estimated reinstatement costs of your asset for insurance purpose, ensuring the continued protection of your investment.
Chartered Surveyors will accurately undertake an insurance valuation specific for your property to ensure your pay the correct premium
Basis Of Reinstatement Cost
An insurance valuation/reinstatement cost is affected by many factors, and also is based on a wide range of inputs including; site clearance and building costs, building type, location, height, property size and construction materials and not on a market value basis.
Insurance Valuation Versus Market Value
The reinstatement cost is not the same as the value for your property. Reinstatement costs are for an accurate reconstruction of your property, whereas market value is simply what the property is worth as a whole finished product.
It is vital to know the correct reinstatement cost of your property so as not to under-insure or over-insure your property. Being over-insured is a waste of money. Being underinsured puts property owners at risk. If you under-insure your property, your insurance company may not be able to pay out the full claim, however; if you over insure your property, it simply means you are paying an excess of the amount needed to fully insure your building.
It is recommended that insurance valuation is updated every three years for commercial property because the risks of inappropriate insurance are high.
Reinstalment cost assessment in accordance with RICS Guidelines.
To find out how much a potential property reinstatement costs will be, you should use a qualified surveyor, with an insurance reinstatement valuation from an RICS Registered Valuers, You can:
- Minimise the risk of inaccuracy
- You ensure that you are paying the right amount for insurance and do not needlessly pay too much or too little for cove due to inaccurate estimates.
- You ensure that your insurance covers you for the wrest-case scenario.