An Insurance Valuation is a Reinstatement Cost Assessment. It provides the estimated cost to rebuild a property after a total loss. This covers construction work, professional and authority fees, and inflation. The report is given to insurers to confirm adequate cover, and they adjust premiums based on this rebuild cost.
We also provide an Indemnity Value or Depreciated Replacement Cost using the straight line method. This calculates the correct Fire Services Levy for your insurance premiums to support local fire departments.
An accurate reinstatement cost prevents financial risk. Without it, you face potential shortfalls if underinsured. Overestimating the rebuild cost also leads to unnecessarily high premiums.
Are you looking for independent Quantity Surveyor in New Zealand? Our team offers an extensive suite of cost-effective, high-quality services for residential, commercial, retail, and industrial projects. Contact us today to discuss your project needs.
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Having the appropriate value of insurance cover is essential when protecting your commercial property, and similarly, keeping it up to date is equally important. However, how can you be sure you’re covered for the full insurance rebuild cost in the event of a disaster? This is where a Quantity Surveyor’s reinstatement cost assessment comes in.
An Insurance Valuation is a Reinstatement Cost Assessment, which includes the estimated cost to rebuild a property in the event of ‘total loss’. This estimate includes construction works, professional fees, authority fees, and inflationary provisions. The report is disclosed to insurance providers to ensure adequate insurance cover is provided. The insurance companies in turn adjust their premiums accordingly based on the insurance rebuild cost.
We also provide an Indemnity Estimate or Depreciated Replacement Cost Estimate, calculated using the straight-line method. We use this to calculate the appropriate value of Fire Services Levies for your insurance premiums to fund local fire departments.
Having an accurate and up-to-date reinstatement cost ensures you’re not at risk of financial shortfalls in the event of a total loss. Without one, you risk being underinsured and could face significant cost overruns should the worst happen. Equally, overvaluing the cost of rebuilding will result in higher premiums.
We prepare Insurance Valuations and Reinstatement Cost Estimates for insurance purposes, which insurance providers use to offer you coverage in the event of a total loss. This estimate includes construction works, professional fees, authority fees, and inflationary provisions.
An accurate insurance rebuild cost valuation provides peace of mind that your commercial property is adequately insured. Properties depreciate, building codes change, and construction costs fluctuate over time, so regular assessments are necessary to keep your insurance aligned with current market conditions.
Failing to update your insurance valuations can lead to financial risk. For example, if rebuilding costs increase after a natural disaster, underinsurance means you could face significant out-of-pocket expenses to cover the shortfall. Conversely, inflated rebuild costs increase your premiums unnecessarily.
It is recommended to have a Quantity Surveyor conduct an insurance rebuild cost assessment:
Having regular assessments ensures your insurance valuations reflect the true cost to reinstate your property and helps avoid surprises if you need to make a claim.
Some property owners believe their building’s market value or purchase price automatically reflects the rebuild cost, but this is not the case. Market value includes land value and other factors that don’t impact the insurance rebuild cost.
Another misconception is that insurance policies automatically cover inflation. While some do, it’s better to have a professional Quantity Surveyor calculate inflationary provisions specific to your property to ensure coverage is adequate.
Our team of expert Quantity Surveyors conducts thorough site inspections and detailed assessments to prepare your insurance valuations. We factor in current construction methods, materials, labour costs, professional fees, and compliance with New Zealand building regulations.
We provide clear, comprehensive reports that can be submitted directly to your insurer to facilitate accurate premium calculations and policy adjustments.
The average cost in preparing the RCA depends on the location, size, and complexity of the property. Our fees for a detailed and extensive Reinstatement Cost Assessment typically range from $900 (excl. GST) to $1,500 (excl. GST).
An Insurance Reinstatement Valuation is a critical document for protecting your property investment. Below are answers to some of the most common questions we receive about the process, cost, and timing.
Our Insurance Reinstatement Valuations are priced at $900 (excluding GST) for a standard residential or commercial property. This fee covers a comprehensive assessment and a detailed report that meets all insurer requirements. For large or complex properties, we provide a fixed, upfront quote after a brief discussion.
We understand you often need this report promptly. From the time we receive all necessary property information (such as plans or a site visit), the report is typically completed and delivered to you within 2 working days.
A property's market value includes the land, which is not at risk from events like fire or storm. Insurance needs to cover only the cost to rebuild the structures on that land. Rebuild costs are influenced by construction rates, material prices, and compliance fees, which are often completely disconnected from market trends. Using market value can lead to severe under-insurance or over-paying for premiums, whereas a professional valuation provides a precise rebuild figure.
