Reinstatement value for building insurance

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    Reinstatement value for building insurance

    We have just had the reinstatement value assessed and there is a massive difference to last year...at least 200K, so has the director been under insuring the asset?

    #2
    The re-instatement value for insuring a block of flats should calculated from floor area x the building rate per sq m. by a Chartered Surveyor ( RICS Member ) and the re-instatement value does not include any land cost.

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      #3
      Thanks Gordon so is this for everything except the land? There seems a big difference form one year?

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        #4
        The re-instatement cost includes rebuilding of a property totally damaged, site clearance of debris , surveyor and architect fees. The cost valuation by surveyor is recommended every 5 years, but often the insurance policy is renewed by managing agents , based on old valuations.

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          #5
          I always feel the 5 yearly valuation is a bit of a scam / surveyors job creation scheme. Simple matter to index link it - sq MTRS X local rebuild costs as stated.
          This property may have been undervalued to artificially lower the premium in the past but if you tell us what it is per flat some brains on here will spot if it's our of order .

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            #6
            Sorry I have never done this before, can someone simplify for me? Do I measure the whole floor area of my flat and the basement. Then get he other flats measurements and the roof space?

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              #7
              Might be easiest if you just measure outside of the building dimensions to get floor area and multiply by the number of floors. It's only a rough guide but will let you know if worth pursuing
              For a premium I would be complaining at anything over £400 for an average flat with no excessive claims history..

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                #8
                The annual cost of buildings insurance is given in your most recent annual service charge accounts.

                If you divide by the number of flats in your block sharing the total cost of the buildings insurance, what does the " average cost per flat " come to ?

                Section20z has suggested it should not be more than £400.

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                  #9
                  Thank you for all your help...I will get the measuring tape out and start measuring!

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                    #10
                    I am doing a lot of reinstatement valuations during this period of enforced lockdown. The reason for this is that a few months ago we had a massive loss on a property (running well into six figures) and although the loss adjuster admitted the claim, he thought the insured amount was a bit light and started talking about "averaging" the claim; which is to say reducing it by the extent of the alleged underinsurance.
                    There were some discussions and on this occasion insurers agreed to meet the claim fully on the understanding that we would have a sample of risks in our block policy revalued and increase cover if on revaluation we found ourselves to be underinsured. I have no connection whatsoever with the organisation but found an online chartered surveyors service that could do the valuation at around a third of the cost of the traditional route of having some tweedy valuer round with a clip board who then goes off and calculates the rebuilding sum. All of the valuers use a set of scales from the Building Cost Information Service which aggregates reported building values in different localities of Britain and then makes adjustments. I send in whatever plans I have, even the floorplan prepared for reletting; and photos although for rebuilding valuations the valuer uses external dimensions. The service is called
                    RebuildCostASSESSMENT.com

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                      #11
                      Thanks for the link flying freehold I shall check this out.....I have been told by a surveyor that it should be insured for over £1.2m and alternative accommodation cover should be 14 to 18 months because if there was a total loss we would need planning which could take months fees, architects drawings and fees, specialist materials, scaffolding and several sets of boilers, electric systems, plumbing, kitchens and bathrooms and fire separation. The building has been underinsured by 300K!!!

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