High levels of inflation are hitting the cost of building materials, creating a potential issue for both residential and commercial property owners. Calculated rebuild costs have risen significantly over the past 12 months, driven by several factors including Brexit and the availability of materials, both of which are further compounded by high inflation. Building owners that have an old or estimated rebuild cost in place on their insurance policy may therefore find that they are underinsured in the event of a claim.
In order to ascertain an accurate rebuild/reinstatement cost, the best way forward is to obtain a valuation, undertaken by a Chartered Valuation Surveyor.
A Reinstatement Cost Assessment/Valuation will provide a complete assessment of a property’s rebuild costs, taking a wide number of factors into consideration. The starting point is to calculate a cost to rebuild the main structure of the building, including its foundations. Further to this, a large number of other costs will be factored in, including demolition, debris removal, labour and materials and professional fees. Many buildings will also have external features such as car parking areas, drives, fences, gates, outbuildings and garages.
Larger properties/commercial properties /rural properties may have other features such as alternative drainage and water pumping plant supply, landscaping, swimming pools, tennis courts or other leisure facilities.
In the current climate of high levels of inflation, it is important to have the reassurance that you are fully insured by way of an accurate building reinstatement cost.
It is usually recommended that a Reinstatement Cost Assessment is carried out every three years, at a minimum. However, with the costs of building materials having risen rapidly over recent months, even where a building has been valued for reinstatement costs within this timeframe, there may be significant shortfall.
To discuss having a Reinstatement Cost Assessment/Valuation prepared for your property / portfolio of properties, please get in touch.
