Reinstatement Cost Assessments: Ensuring Proper Building Insurance

Are you confident that your property is adequately insured? Many property owners unknowingly underinsure their buildings, leaving themselves financially vulnerable in case of damage or destruction.

This is where a Reinstatement Cost Assessment (RCA) comes in. Let's explore what an RCA is, why it's crucial, and how it's conducted.

What is a Reinstatement Cost Assessment?

A Reinstatement Cost Assessment, often abbreviated as RCA, is a professional evaluation of the cost to rebuild a property from scratch. This assessment is crucial for insurance purposes, as it determines the correct amount for which a building should be insured.

Why is an RCA Important?

The primary reason for getting an RCA is to ensure your building is adequately insured. If your property is underinsured and suffers damage, you may face significant out-of-pocket expenses. Conversely, overinsurance means you're paying unnecessarily high premiums.

An RCA provides:

1. An accurate sum insured for your building insurance
2. Peace of mind that you're not underinsured
3. Potential savings on insurance premiums if you're currently overinsured

Who Conducts RCAs?

RCAs are typically carried out by chartered surveyors who are members of the Royal Institution of Chartered Surveyors (RICS), like our own Building Solutions team. These professionals have the expertise to accurately assess the cost to rebuild your property.

What Does an RCA Consider?

When conducting an RCA, surveyors consider various factors:

1. Building Cost: This includes materials and labour required for reconstruction.
2. Professional Fees: Costs for architects, surveyors, and engineers.
3. Demolition and Debris Removal: If the building needs to be demolished before rebuilding.
4. Building Regulations: Any additional costs to comply with current regulations.
5. Location: Construction costs can vary significantly by region.

How Often Should You Get an RCA?

The Association of British Insurers (ABI) recommends getting an RCA every three to five years. However, you should also consider getting a new assessment if you've made significant alterations to your property or if there have been substantial changes in construction costs.

DIY vs Professional RCA

While there are online calculators available for estimating rebuilding costs, these tools often provide rough estimates and may not account for unique features of your property. A professional RCA by a chartered surveyor ensures a more accurate valuation, considering all aspects of your specific building.

The RCA Process

1. Property Inspection: The surveyor will visit your property to assess its construction, materials, and unique features.
2. Measurements: Accurate measurements of the building are taken.
3. Calculation: Using industry-standard methods, the surveyor calculates the rebuilding cost.
4. Report: A detailed report is provided, including the recommended sum insured.

A Reinstatement Cost Assessment is a vital tool for ensuring your property is correctly insured. By providing an accurate rebuilding cost, an RCA helps protect your investment and gives you peace of mind. If you haven't had an RCA in the past few years, or if you've made significant changes to your property, consider getting one from a RICS-certified surveyor.

Remember, the cost of an RCA is a small price to pay compared to the potential financial risk of being underinsured. Protect your property investment by ensuring your building insurance is based on an up-to-date and accurate Reinstatement Cost Assessment.

If you'd like to discuss an RCA, you can get in touch with the Innovus Building Solutions team using our online contact form.