An insurance reinstatement valuation (also known as a reinstatement cost assessment or building sum insured) refers to the amount it would cost to rebuild the entire building from scratch in the event of catastrophic damage. It assumes a total - loss scenario and therefore includes costs of demolition, site clearance, estimates of materials, labour and professional fees.
In order to provide insurance coverage for the premises, almost all insurance providers will require an insurance reinstatement valuation to be carried out by a qualified professional.
Calculating the reinstatement cost of a building is a highly technical and complex process, but accuracy is vital as this is the maximum your insurer will pay out if you claim. Your building should be insured for the-building cost (not what you paid for the property or the current market value).
Even if you have had a reinstatement cost assessment carried out in the past, these can become out of date within a few years. Insurance companies generally index link rebuilding costs year on year, which can distort figures compared to true reconstruction values. The Royal Institution of Chartered Surveyors (RICS) recommends that reinstatement costs are reviewed annually with a desktop assessment, and a full evaluation is carried out every 3 years, or when significant changes are made to the building.
Our valuations use the most up to date data provided by the Royal Institution of Chartered Surveyors Building Cost Information Service.
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