In Ireland, over 90% of commercial properties are not insured for the correct amount. This fact puts many property owners at risk of significant financial loss if disaster strikes. The solution lies in obtaining an accurate reinstatement cost assessment Consider hiring a qualified surveyor to conduct a thorough inspection of your property. This article will guide you through the process of selecting the right professional for this critical task.
Understanding Reinstatement Cost Assessments
A reinstatement cost assessment determines the exact amount needed to rebuild your property from scratch in the event of total destruction. This reinstatement cost figure differs from market value and requires specific expertise to calculate correctly, often necessitating a detailed assessment of the property.
Insurance policies contain an “Average Clause” that can severely impact claim payouts if your property is underinsured. Under this clause, insurers can reduce claim payments proportionally to the level of underinsurance. For example, if your building is insured for only 50% of its true reinstatement value, you might receive only 50% of any claim amount—even for partial damage.
With construction costs increasing by 14% annually according to the Society of Chartered Surveyors Ireland (SCSI), and rising by 22% over the past 18 months due to supply chain issues and other factors, many property owners find themselves increasingly underinsured Without realizing it, many property owners overlook the importance of a thorough building survey.
The Importance of Professional Qualifications
When selecting a surveyor for your reinstatement cost assessment, professional qualifications should top your list of requirements, particularly those of RICS chartered surveyors. Look for surveyors regulated by the Royal Institution of Chartered Surveyors (RICS), as this ensures they adhere to strict professional standards in their assessments. Our team at RebuildValuation consists of RICS-regulated Chartered Building Surveyors.
A Chartered Building Surveyor brings specialized knowledge of construction methods, materials, and costs. They understand regional price variations and can accurately assess the condition of the property and unique features that affect rebuilding costs.
RICS accreditation means the surveyor follows established guidelines for conducting assessments, resulting in more reliable valuations. This credential indicates the surveyor has demonstrated expertise through rigorous examination and continues to meet professional development requirements.
Experience in Commercial Property Assessments
Experience matters significantly when choosing a surveyor for reinstatement cost assessments. Surveyors who specialize in commercial properties understand the unique characteristics and requirements of different building types.
Ask potential surveyors about their experience with properties similar to yours and their approach to level 2 and level 3 assessments. A surveyor who regularly works with industrial buildings, for instance, will better understand the specialized elements of such structures compared to someone who primarily assesses residential properties.
Experienced surveyors can identify non-standard construction features that might affect rebuilding costs. They can also spot potential defects that less experienced professionals might miss, such as specialized mechanical systems or unique architectural elements that would be costly to recreate.
On-Site versus Desktop Assessments
The most accurate reinstatement cost assessments involve on-site visits. During these visits, surveyors physically inspect your property, taking measurements and noting construction details that affect rebuilding costs.
While desktop assessments exist and may cost less, they rely on existing documentation and cannot account for modifications, unique features, or specific site conditions that might impact rebuilding costs. For large, complex, or unique properties, level 3 on-site assessments provide significantly more accurate results.
The best surveyors prepare thoroughly before visiting your property. They review available documentation, research local building costs, and come equipped to conduct a comprehensive assessment efficiently.
Comprehensive Reporting
A professional reinstatement cost assessment should result in a detailed report that explains how the surveyor arrived at the final figure. This report serves as documentation for your insurer and helps you understand the factors affecting your property’s reinstatement costs.
Quality reports from chartered surveyors include breakdowns of costs by building component, explanations of methodology, and considerations for factors like demolition, professional fees, and inflation. They also highlight any assumptions made during the inspection process.
Ask potential surveyors what their reports include and request sample reports to evaluate thoroughness. The best surveyors provide clear, comprehensive documentation that stands up to scrutiny from insurance companies.
Regular Updates and Follow-Up Services
Construction costs change over time, affecting the accuracy of your reinstatement cost assessment. RICS best practice guidelines recommend undertaking desk-based reviews every 2-3 years after the initial assessment of the property, with more frequent updates during periods of significant cost inflation. You can learn more about this in our FAQ section.
When choosing a surveyor, ask about their approach to updates and whether they offer reminder services. Some surveyors provide ongoing support, alerting clients when assessments need reviewing based on market changes.
This ongoing relationship with a qualified surveyor helps ensure your property remains correctly insured as construction costs fluctuate. Given the recent rapid increases in building costs, regular updates have become even more critical for maintaining adequate coverage.
Industry Connections and Knowledge
Surveyors with strong connections to the insurance industry understand what insurers look for in reinstatement cost assessments, especially when they are RICS surveyors. This knowledge helps ensure your assessment meets insurer requirements, reducing the chance of disputes if you need to make a claim.
Look for surveyors who work with insurance brokers, property management companies, and RICS surveyors. Their familiarity with insurance terminology and requirements, as well as their expertise in RICS home surveys, adds value to their assessments.
Industry-connected surveyors stay informed about changes in construction costs, building regulations, and insurance requirements that might affect your coverage needs. This up-to-date knowledge translates into more accurate assessments.
Cost versus Value
While cost matters when selecting a surveyor, the potential financial impact of underinsurance makes focusing solely on price shortsighted. Consider the value provided rather than just the fee charged.
An accurate valuation from a qualified professional might cost more initially but protects against potentially devastating financial losses if you need to make an insurance claim. Weigh the surveyor’s fee against the value of your property and the risk of underinsurance.
Some surveyors offer different service levels based on property size and complexity. Discuss your specific needs to find a service package that balances cost with the level of detail required for your property.
Conclusion
Selecting the right surveyor for your reinstatement cost assessment requires careful consideration of qualifications, experience, assessment methods, reporting quality, update services, industry knowledge, and value. By choosing a RICS-regulated Chartered Building Surveyor with specific experience in properties like yours, you significantly reduce the risk of underinsurance. Feel free to Contact us to schedule a comprehensive assessment of the property. to discuss your specific reinstatement cost requirements.
With construction costs rising rapidly and over 90% of commercial properties in Ireland underinsured, accurate reinstatement cost assessments have never been more important. Invest time in finding the right surveyor now to protect your property investment for the future.
Remember that insurance requirements state that you, as the property owner, are responsible for providing the correct reinstatement cost value for your building. A professional reinstatement cost assessment from a RICS surveyor gives you confidence that you’ve met this obligation and secured proper protection for your valuable asset.