Fire Insurance Valuations / Building Reinstatement Cost Assessments (RCA)
Every property needs to be insured. Leases often give the landlord this responsibility with the costs being reimbursed by the lessees. An underestimation of the insured value can result in a shortfall in insurance cover, and this can lead to claims being rejected or only partially recovered. There is no substitute for specialist advice.
Generic calculators found on insurance company websites or the repeated index linking of sums insured over many years can lead to there being incorrect cover that is either too high or too low. These desktop-style exercises also ignore any changes in the building or its surroundings that may affect the level of insurance cover required.
The Royal Institution of Chartered Surveyors advises that a detailed professional RCA is undertaken about every 3 years.
At LBB Chartered Surveyors we provide this advice to landlords or their managing agents, on individual properties and portfolios, ensuring that the appropriate level of cover is in place.
As part of a RCA, we inspect and measure the floor area of the property, any adjoining outbuildings and grounds. Our assessment is based on style of construction, building materials, quality, location, age and accounts for all components that affect rebuild value.
Experience has shown us that an RCA is also important on new-build properties. These are often insured based upon a developer’s estimation and our surveyors regularly find that new-build properties have been under-insured.