Almost all buildings require insurance and almost all insurers will require a reinstatement cost assessment (also known as a rebuild valuation) to assess the level of insurance required. This seafront block of flats was no exception and, with the client’s insurance up for renewal, we were instructed to provide a bespoke demolition and rebuild cost to ensure that the property was not over- or underinsured.
Discussions with the client revealed early in the process that there were no measured plans or Gross Internal Areas (GIAs) measurements available, which are pivotal in calculating the rebuild cost. A desktop review of the building also revealed some fairly unique features that would need to be considered. For example, the property was built on a harbour front and the only access for anything larger than a panel van is by sea. The property also benefitted from a private slipway which was enclosed by sea walls that would need to be factored into the assessment.
We would always advise that our clients instruct a site visit – not only is this strongly advised by RICS, but it allows us to fully inspect the building’s construction, any unique features, the site and any restrictions. In this instance it was necessary to undertake sufficient measurements of the property alongside this inspection to allow us to calculate the rebuild cost as accurately as possible.
Applying this data against various cost databases, previous works instructed internally, and our own experience allowed us to formulate an accurate demolition and rebuild valuation. We even spent time on the phone to marine transport companies to understand the cost of transporting building materials to and from the site exclusively by sea.
We produced a highly bespoke demolition and rebuild cost for the flats that would satisfy the requirements of the insurers, leaving the client secure in the knowledge that they were not over- or underinsuring their property. This has possibly saved the client money on the cost of their insurance premium and, if the worst were to happen, they shouldn’t find themselves short of funds when it comes to a rebuiljamd.
Our experienced team is ready to assist with unparalleled regional advice.
