Insurance and Reinstatement Valuations
Property owners often neglect to calculate the actual rebuilding cost when advising their insurance company of the total sum needed for their building’s insurance. Samuels Surveyors can help you to calculate the reinstatement cost of your property.
Building reinstatement Cost Assessments are required to assess the cost of rebuilding a property in the event of destruction, usually a requirement of your building insurance. Samuels will undertake the measurement (based on a gross external measurement), assessment and calculation to prepare the required valuation for residential properties.
A reinstatement valuation, sometimes referred to as the rebuilding cost, sum insured or fire insurance valuation, is an assessment of the cost of reconstructing the property at the date of the assessment and has taken into consideration demolition, debris removal, temporary shoring and professional fees likely to be incurred in its reconstruction to its existing design in modern materials, using modern techniques, to a standard equal to the existing property and in accordance with current Building Regulations and other statutory requirements. It excludes VAT, except on professional fees. This figure may be used to make your own insurance arrangements or for you to negotiate a claim with the assistance of your broker and your insurers.
Modern, Protected or Commercial Building?
Where your property is of modern materials and standard design the reinstatement figure can be calculated in accordance with Building Cost Information Service (BCIS) guidance. However, if your property is not of modern materials, or is a protected building that is required to be reinstated exactly and is therefore outside the scope of BCIS guidance, or is a commercial property in whole or in part then a professional reinstatement cost assessment is recommended.
In the case of flats or maisonettes, the reinstatement cost should be for the building as a whole and for this reason it is usually arranged by the management committee or the landlord. In these circumstances a professional reinstatement cost assessment is also recommended.
You are responsible for the correct valuation!
A significant proportion of policyholders may be surprised to discover that the responsibility for the sum insured rests with them and not the insurer, the broker or intermediary, or even the bank or building society valuer. So, if disaster strikes and the insurance fails to meet the full cost of rebuilding, whilst you may in the long term be able to obtain some redress from one or several of the parties involved in calculating the original reinstatement figure, you are left with an incomplete and most probably non-habitable or non-functional property.
Regardless of what type or size of property you own, if you have not had a recent professional reinstatement valuation, there is the risk that you may be underinsured, particularly if you have extended or altered your property in any way. In addition, if you are relying on the figure provided by your Lender or broker, inappropriate valuations are still being provided which have been based on a rule of thumb or very general rate per square metre. No allowance will have been made for location, inflation, type and extent of boundaries, hardstanding, outbuildings and many more factors which need to be accounted for in an accurate valuation.
At Samuels Surveyors & Valuers, our highly experienced professionals can assist with providing reinstatement valuations and, where appropriate, calculations for standard residential properties can be completed using the BCIS Online system.
If you’re looking to reduce your insurance overheads and get an up to date valuation for rebuilding costs of your property then get in touch with us today. We work throughout Surrey and London so give us a call today on 020 7043 1376.