Usually, the home insurance you purchase is calculated not upon the value of your property in today’s market, but instead on the cost of reinstating the property as it stands on a particular date. An insurance reinstatement valuation informs insurance companies on how much it will cost to rebuild the structure should it sustain major damage.
By overestimating the value, you might find yourself overpaying in insurance. On the other hand, if you are underpaying your insurance due to a low reinstatement cost valuation, you might not have enough coverage to restore your property in case of a catastrophe. Instead of estimating, an RICS surveyor rightly establishes the insurance reinstatement valuation of your home.
Our panel of valuers use the latest RICS Building Cost Information Service (BCIS) guidelines to provide the London homes and businesses with apt and professional Reinstatement Cost Assessment. Call today for a Reinstatement Valuation in London.
Benefits from Reinstatement Valuation
With an insurance reinstatement valuation from an RICS-registered valuer, you can:
Online estimates for the cost of rebuilding from scratch tend to be free and of varying reliability. For reasons explained below, if you over or under the estimate, you could pay too much or too little for your home insurance. The exception to this rule, is an opportunity to obtain a more accurate reinstatement cost assessment from an RICS registered valuer.
Related reading and services: reinstatement cost assessments, RICS valuation costs and Red Book valuations.
Reinstatement cost is what it would cost to rebuild the property today — demolition, materials, labour, professional fees and VAT — not what it would sell for. The two figures routinely differ by six figures in London: a £900,000 Victorian terrace may cost £450,000 to rebuild, while a £400,000 flat above a shop can cost more than its market value. Insuring on the wrong figure means either over-paying premiums for years or facing a shortfall when a claim is assessed.
RICS recommends a professional reinstatement assessment every three years, after any extension or major refurbishment, and whenever a mortgage lender or freeholder requires one. We arrange RICS-qualified assessors across London and the South East — see also our reinstatement cost valuation service or call 0204 579 8270 for a fixed fee.
