Building Replacement Insurance Valuations – Australia
The Replacement Insurance Value is the sum of money it would take to construct a building with the same functional use and of the same useable area as the original building. The new building would also have to conform to regulations and bylaws since the original date of construction.
Loss of Rent and Emergency Accommodation
An Allowance for The loss of Rent and for the provision of Emergency Accommodation is included in our reports.
It can sometimes be up to 2 years before the completion of the building following an event.
We have been monitoring a building that had a major fire and the time taken just to demolish the old building was 6 months.
Value of the Building Replacement
The calculated value of the building comprises of several elements:
- Present Building Costs.
- Allowance for Cost Escalation during the lead time of planning, calling tenders, and fitout.
- Professional Fees.
- Removal of Debris.
Cost Escalation is the allowance made for price increases of costs incurred in re building such as Engineering Fees and Materials.
Update April 2014:
With the rising of extreme events in north Queensland over the last couple of years, With Cyclone ITA. It is a timely reminder that Risk Management of the Value of an Insurance Valuation to determine if the building is under-insured. Best Practice in the industry is having a review of the replacement insurance every 5 years, with this requirement written into body corporate and Strata legislation .
Northern Queensland has experienced I dramatic rise in the premiums and is certainly a contentious issue, with the excessive premiums from the insurance companies making it harder for owners. Strata Community Australia has embarked on a campaign to bring these issues to the insures and getting some common sense back in the market.
Locations – Insurance Valuation For Buildings Services:
Independent Inspections provides insurance valuation services to all major cities in Australia such as Brisbane (QLD), Sydney (NSW), Melbourne (VIC), Adelaide (SA), Perth (WA), Darwin (NT), Canberra (ACT), Hobart (TAS), Gold Coast (Queensland).