Reinstatement Cost Assessments
Getting your reinstatement cost assessment right not only gives you the comfort that you have sufficient cover when the worst happens but also ensures you are not over insured and thus paying too much for your cover.
Reinstatement Cost Assessments (RCAs) estimate the anticipated cost of reconstructing a building for insurance purposes in the event of substantial damage or total loss.
What does the reinstatement cost assessment involve?
The production of an RCA involves two phases:
The first step is to complete an inspection of your property to gather information needed to complete the reinstatement cost calculation. Our surveyors will typically record:
- The layout of the building
- A general schedule of accommodation use
- The type and form of construction
- A summary of the building’s services
- An outline of External areas
- Specialist features
Second is the production of the assessment itself. With a few exceptions, the final assessment figure will comprise the total cost of completely rebuilding the property together with allowances covering demolition and debris removal along with professional and statutory fees.
The usual requirement for a reinstatement cost assessment is that it is prepared on the basis of a 'day one' reinstatement figure known as the declared value.
Insurance companies use RCAs as a basis for determining the appropriate amount of insurance cover to offer their clients.
Why is the reinstatement cost assessment so important?
Having the correct declared value is essential in the event of a claim for substantial or total loss as, if under insured, your policy may not cover the total cost of reinstatement and you will have to find the difference.
Equally if the value is set too high you will likely be paying too much for your insurance.
How often should a reinstatement cost assessment be updated?
The Royal Institution of Chartered Surveyors guidance recommends that RCAs are updated at least every three years to ensure that the value reflects tender price inflation and changes in legislation.
However if you have completed a significant refurbishment or extended your property it should ideally be re-valued upon completion.
Labour and material costs have been subject to significant fluctuation since COVID so, if you current RCA pre-dates lock down then an urgent reassessment is highly recommended.
Why should I choose Evans Jones for my reinstatement cost assessment?
- QUALIFIED - The Association of British Insurers recommend you use a Chartered Surveyor to complete your RCA. We are an RICS regulated firm with a team of Chartered Building Surveyors.
- EXPERIENCED - We were established in 1972 and since then have completed reinstatement cost assessments of in excess of 10,000 buildings ranging from Listed manor houses to modern leisure centres and everything in between.
- DELIVERY - We have the capacity to value large portfolios of hundreds of properties using our experience and technology to develop efficient and consistent data collection and reporting systems.
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