Brokers Ireland Affinity Partner
As an insurance broker, do you know the current rebuild cost of your client’s property? Research shows us that over 85% of properties aren’t insured for the correct amount.
Don’t guess the Sum Insured and gamble with your client’s insurance policy. You can now reduce the risk of under-insurance and differentiate yourself from your competitors by having your client’s property reinstatement cost professionally assessed.
And what’s more … your clients will thank you for it.
We are experienced Chartered Building Surveyors specialising in reinstatement cost assessment of commercial properties. As we are also involved in property loss assessments, we understand the danger of the average clause and the risek of underinsurance, especially for insurance brokers. We know of situations where specifying inaccurate sums insured have led to cases of misrepresentation and damaging negligence claims. This is where our proven building surveying experience, intimate knowledge of current building standards and regulations and thorough approach to researching local construction costs and labour situation comes to play. We provide comprehensive and detailed rebuild cost valuations enabling you to secure appropriate insurance coverage and protect your client’s valuable assets.
Reinstatment Cost Assessment is very different from the Property Market Value. Real Estate price is driven by what the market is prepared to pay based on the property location, neighbourhood, age, condition, age, energy efficiency, personal aesthetics and perception of value.
This is especially true for residential properties. The Market value can be fairly accurately assessed in a couple of minutes by an experienced Real Estate Agent. As the Estate Agent hopes to get a listing, it is usually provided free of charge.
Determining the market value of a commercial property is slightly more complicated as the value can be determined in a number of ways, depending on the type of property and your specific perspective e.g. on the cost basis, by comparing sales value of similar properties in the area, by considering rental income potential and a number of other methods.
Reinstatement Cost Assessments, on the other hand, are based on hard replacement costs – the cost of construction materials and the estimated cost of labour, not just to re-instate the property to the pre-loss condition, but to rebuild the property in line with the current building regulations and standards.
In other words, the building constructed in 1970 and destroyed in 2023 will have to be reinstated to 2023 building regulations and current standards.
Therefore, a RICS Chartered Surveyor is always best placed to perform a reinstatement cost assessment, preferably someone with building insurance claims experience who would know and understand the implications of the Average clause.