Insurance Reinstatement Cost Assessment
Get expert help in London and the surrounding areas with your insurance reinstatement cost assessment from Crest Chartered Surveyors.
A Reassessment Cost Valuation, (RCA) is a calculation by a trained professional that totals the complete costs to rebuild a property in the event of a total loss. This is the declared value that is used by insurance companies to provide the correct figure of cover.
The reinstatement cost of your property has no direct bearing with its market value. However, it is vital for homeowners or homebuyers to know the reinstatement cost of their property, as it will be needed for their building’s insurance policy.
As a homeowner, it is your responsibility to ensure that a correct and accurate valuation for your property is provided to insurance companies. If this figure is incorrect, you may not be awarded the full amount to cover the loss in the event of something going wrong. Under-insuring your property will mean that you won’t be awarded the full cost for damages, while over-insuring will mean that you pay a premium price.
When Do I Need to Complete an Insurance Reinstatement Cost Assessment?
There is no legal requirement to complete a reinstatement cost assessment for insurance purposes on your property, but failing to have one completed by the time you purchase insurance could damage your claim if the worst should happen. We therefore strongly recommend you complete an RCA before you purchase insurance.
An insurance reinstatement cost assessment is recommended for your property every three years, as costs for labour and materials regularly change.
What Factors May Affect an Insurance Reinstatement Cost Assessment?
Some of the factors that affect Insurance Reinstatement Cost Assessment are:
- Listed Property – If the property you want to assess is listed, it will likely increase the reinstatement cost.
- Location – Some property locations attract higher premiums than others.
- Site Factors – these include factors such as availability of workspace, access to railway lines, proximity to rivers, etc.
Property Size and - Construction – The size of the property and the type of construction has a direct effect on the reinstatement cost.
About Crest Surveyors
Crest Surveyors are one of the most trusted surveyors and valuers in London and the Home Counties, with expertise in all aspects of our industry. All of our surveyors and valuers are highly qualified and RICS registered, meaning that you’re always getting the best information and official valuations and surveys possible.
We understand that purchasing, selling, or even renting a property can be stressful and include a large financial investment. That’s why we work hard to enable you to negotiate the best possible price for your property.
Insurance Reinstatement Cost Assessments With Crest Surveyors
If you’re in London or the surrounding areas, Crest Chartered Surveyors are here to help value your property. At Crest Chartered Surveyors, all of our surveyors are members of the Royal Institution of Chartered Surveyors (RICS). Not only will you receive a service second to none, you’ll also receive the quickest and most cost-effective solutions for your survey and valuation needs.
Insurance Reinstatement Cost Assessment FAQs
Because the cost of labor and materials can change rapidly, it’s recommended that you regularly complete a reinstatement cost assessment every 3 years. This will protect you from the cost of an issue rising above the amount covered by your insurance.
An insurance reinstatement cost assessment should always be carried out by a RICS registered valuer to ensure that it meets all regulatory requirements and provides an accurate valuation.
Unfortunately, if the assessment is performed incorrectly, it can cost a lot of money to put right and end up paying too much for your insurance, or not paying enough to cover future issues.
The reinstatement cost is calculated based on the amount you would need to pay to completely rebuild your property from scratch. This includes materials, bulldozing the remaining site, labour costs, professional fees, and contracts.
It’s calculated in this way to ensure that should a fire or similar disaster destroy the entire building, this would all still be covered by your insurance. Whilst you could pay for the maximum insurance possible, this would mean that you’re paying a premium when insurance that costs much less would be enough to cover the entire building.
Market value and reinstatement cost aren’t tied together, and your market value can differ based on various factors. These include location (some locations are in higher demand) or certain features that are more desirable
Reinstatement costs on the other hand, will fluctuate due to the cost of labour, professional services, and materials. For example, if the availability of a certain material drops after your house is built, this could drastically increase the reinstatement cost of your property.
Contact Us
For more information on our Insurance Reinstatement Cost Assessment service, or to book a valuation, contact Crest Chartered Surveyors today, and one of our experts will be happy to help.