Building Replacement Insurance Valuations

Replacement insurance valuations (or real property insurance valuations) for buildings and their contents require a high level understanding of construction processes and costs.

Quantity Surveyors are universally recognised as the professionals best qualified to estimate construction costs. As quantity surveyors, we are better qualified to prepare these reports than other non-quantity surveying professionals associated with the building or property industry.

buildings that need insurance valuationsPeople sometimes confuse a market valuation (a valuation of the net worth of a property when offered for sale) with an insurance replacement valuation (or real property insurance valuation as they are sometimes called) – they are quite different.

Our building owner clients include clubs, resorts, strata title complexes, office buildings and retirement villages. Consultants within the insurance and strata title industries frequently turn to us for advice in this area. We are approved service providers to the Steadfast Group – the largest independent group of insurance brokers in Australia .

Frequently Asked Questions

Why should you engage a professional consultant to prepare a replacement valuation, rather than attempt the estimate yourself or use a figure based on free advice from an associate or friend (with maybe a connection to the building or insurance industry)?
You need to be confident that the cover you take out is correct. It is false economy to try to save a few hundred dollars on professional fees if in so doing you put at risk hundreds of thousands or possibly millions of dollars worth of property.

Is fire the main risk against which you need to insure?
Statistically this is correct. However, floods and cyclones may also be a major risk – depending on where your property is located.  Earthquakes, although infrequent, can cause widespread destruction, as the earthquake in Newcastle and more recently in Christchurch demonstrated.

Is it only the cost of rebuilding, or are there other costs which should be included in a building replacement valuation?
The buildings are the main cost component, but there are others. These include the cost of professional fees, inflationary factors, meeting current building regulations, demolition and removal of debris and the cost of all work external to the building (such as paving, fences, pools and signs). In most states the legislation makes it mandatory that these costs are included in the replacement value of a strata building.

What does a Leary & Partners replacement insurance valuation report cover?
A Leary & Partners report provides you with a written account of the building structure, external work and major equipment at the date of inspection. It also includes photographs, a measure of the overall building areas and a summary of the costs which make up the valuation.

Can Leary & Partners prepare replacement insurance valuations for loose assets?
Yes we can. Leary & Partners can prepare complete contents replacement insurance valuation reports, together with asset register reports, for any type of building.

Can Leary & Partners prepare valuations for buildings Australia wide?
The company has representatives in Sydney, Melbourne, Brisbane, Gold Coast, Cairns, Sunshine Coast and Central Coast NSW. We can also prepare valuations for buildings in many other locations through our network of associates.

If you would like to discuss this service please call us on freecall 1800 808 991 or email: enquiries@leary.com.au.