Why do I need an Insurance Valuation?
It is prudent for all Strata Schemes to obtain a property valuation by a ‘Qualified Valuer’ for building insurance purposes, at least every 5 years. Our recommendation is that a valuation be undertaken every two to three years (and in some cases every year for larger commercial and industrial properties) to ensure the insured value reflects true building replacement costs.
Building Insurance Valuations
We provide Certificates of Value for the replacement cost and reinstatement of the buildings of the Strata or Community Plan in order to comply with the relevant legislation. For example, in NSW, Section 161 of the Strata Schemes Management Act 2015 and Clause 39 of the Strata Schemes Management Regulation 2016.
Experience
Our chief valuer has over 30 years experience including Expert Evidence in numerous Courts and due diligence on the largest property transactions in Australia to the smaller suburban cottage, amongst other things.
We recommend that a Registered Valuer carries out your Building Insurance Valuation.
Professional Indemnity Insurance
We are members of a Cover of Excellence scheme under the Professional Standards Councils (NSW) and we carry $5,000,000 Professional Indemnity Insurance.
Re-valuation frequency
Good strata and property managers recommend that a Building Insurance Valuation be obtained at least every 3 years and in some cases each year. This protects against potential loss from under-insurance. We consider that the best solution is to have an annual inspection by a Registered Valuer to ensure that your sum insured keeps up to date with the market changes in building costs.
If you are under-insured the insurance company may use the “co-insurance” or averaging clause of the Policy and may only pay a portion of the true replacement cost of the improvements. The short fall may have to be paid by the owner or the Strata Manager if found to be negligent by not getting an updated and current Building Insurance Valuation.
Be aware that building costs can increase significantly greater than CPI. For example, in 2004 concrete and steel costs rose by over 25%. There is a danger of simply applying a CPI or arbitrary increase without being familiar with the movement in construction costs. Use our service to determine an accurate and up to date Building Insurance Valuation for your sum insured and compliance with the legislation.
Ordering a Building Insurance Valuation
When we receive your instructions we will:
- Inspect the subject property and assess the materials and the amount of materials required for the complete replacement of the building and its ancillary improvements. take photos of the improvements and the surrounding area.
- Estimate the replacement cost the improvements and materials, and allow for any additional items specified in the relevant legislation or required by good valuation practice.
- Ensure that the Building Insurance Valuation will be carried out by a Registered Valuer without limitation.
- Provide Certificates of Value, (usually one bound copy, one unbound for photocopying as well as a pdf file for emailing).
Compliance
Our Building Insurance Valuation Reports comply with the relevant legislation and good valuation practice as required by our professional Valuers Institute. Our Report details the individual components that correctly make up a valid Building Insurance Valuation such as demolition costs, professional and Council fees, escalation in constructions costs and gst, amongst other things.
We also take into account different cost factors such as location (some country areas or in a less accessible area), different types of construction material, different finishes and the like.
We are specialists in this type of valuation work. In 2014 we assessed in excess of $11 billion worth of property.
Further Services
In addition to carrying out Building Insurance Valuations, we also assess and prepare Asbestos Registers and Asbestos Management Plans, Sinking Fund Plans, Reserve Fund Plans and Maintenance Fund Plans, Work Health and Safety Reports including 'Common Law Duty of Care' Reports (WHS and OHS), Common Property Repair and Maintenance Reports.
Turnaround time and fees
Our normal turnaround time is around 3 to 7 business days, and we will beat any competitors written quote by 12%.