We provide Building Reinstatement Cost Assessments (previously known as Fire Insurance Valuations) for insurance purposes. Utilising up to date information from the RICS Building Cost Information Service, combined with our extensive experience in cost estimating, we are able to provide a detailed cost estimate upon which to base your insurance.
An RCA is used to calculate the potential cost to rebuild a structure and provide a ‘day one reinstatement’ figure known as the declared value.
It is essential for commercial property owners to arrange regular assessment of their building(s) to ensure that they are appropriately insured in the event of an insured event to allow for the cost of rebuilding the destroyed property (or section thereof) to the condition when new.
Over-estimating the reinstatement cost will result in excessive premiums being paid, whilst under-estimating the reinstatement cost will mean that insufficient funds are available to reinstate the property in the event of total loss.
The reinstatement cost calculation should take into account the building’s age, size, located and associated services/utilities. It is also vital to ensure that provision is included for demolition and clearance of the existing building(s)
Our Building Surveyors have many years experience in assessing all kinds of properties, from small individual units through to large portfolios on behalf of clients in the public and private sectors.
What happens if the building is underinsured?
Insurers can apply “average clause” in the event of a loss. This will deem you a “co-insurer” for the percentage amount by which you are underinsured. For example, if your property is only insured for 80% of its true reinstatement value, your insurer may only pay out for 80% of the claim, even if the total claim is less than your insurance value.
How frequently should an RCA be updated?
We recommend that a full RCA is undertaken every three years, with desktop updates carried out annually with costs adjusted based on Tender Price Indices (TPI’s). However, if there are significant changes made to the property then a re-assessment should be carried out in full to ensure that there is adequate insurance cover in place.
Project Management of Insurance Works
In addition to advising on insurance provisions, we also offer a quick turnaround in the assessment and procurement of remedial works arising from an insured event which may be flood damage, fire, or a vandalism attack. This would involve assessing the damage, preparing an outline feasibility for the work required and acting on a client’s behalf in agreeing this with the insurers Loss Adjuster.
Thereafter, the works would be specified, tendered and Project Managed to ensure that the property can be re-occupied as soon as possible and the disruption to the client’s business minimised as far as possible.