Insurance Replacement Valuations

 

Is Your Property Insured at the Right Value?

 

Many properties are insured at incorrect values.

In most cases, the insured value is based on a rough estimate or outdated figure, rather than the actual cost to rebuild the property.

An insurance replacement valuation determines the cost to rebuild the property from the ground up, based on current construction costs and all related expenses.

Market Value vs Replacement Value

 

Market value and replacement value are not the same.

Market value reflects what a property may sell for

Replacement value reflects what it would cost to rebuild

Insurance cover should be based on replacement value, not market value.

 

What is Included:

 

A proper replacement valuation considers:

Building costs

Demolition and rubble removal

Professional fees

Municipal and approval costs

External works and improvements

The aim is to determine a realistic rebuild cost, not an estimate.

 

 

Who is this for:

 

Homeowners

Body corporates and sectional title schemes

Trustees and managing agents

Insurance brokers

Commercial property owners

 

Sectional Title and Body Corporates:

 

Body corporates are responsible for ensuring that buildings are insured at appropriate replacement values.

Regular valuations help ensure that insurance cover remains aligned with actual rebuild costs and supports responsible management of the scheme.

 

 

Our Approach

 

The process typically includes:

Inspection of the property

Assessment of improvements and condition

Application of current building cost data

Preparation of a clear and supportable report

 

Why it matters

 

Incorrect insurance values can lead to:

Shortfalls in the event of a claim

Unnecessary premium costs

Uncertainty around cover

A professional valuation provides clarity and confidence.