Insurance valuations for commercial property are part of our core services – we value all types of commercial buildings, providing accurate reinstatement cost assessments.
A Reinstatement Cost Assessment (RCA) is the basis adopted by the Royal Institution of Chartered Surveyors (RICS) for undertaking an assessment of the commercial property for insurance purposes.
The term “reinstatement” indicates to repair, reconstruct or renew assets to a condition equal to but not better than when new.
This assessment is all-encompassing and can often include inspection and reporting on a wide range of properties of differing size, type and use incorporating complex structures and installations.
An accurate Reinstatement Cost Assessment is critical.
It is critical that reinstatement cost assessments take into account the overall cost of demolition and rebuilding the property, together with any other allowances required by the lease terms. This will allow the property owner to implement an appropriate level of insurance cover. Failure to do so could have far reaching results – including legal action .
In the event that the building is under-insured, the insurance provider may invoke the Condition of Average Clause where the total claim is reduced proportionally to the value of under-insurance. This could have devastating effects, with the policy holder liable for the shortfall in the payout.
Barrett Corp Harrington have extensive experience in assessing commercial properties – including factories, warehouses, industrial units, offices, shops, hotels, farms and general agricultural structures.
This experience ensures we can provide our customers with highly accurate insurance valuations – executed with high standards of professionalism.
Most assessments for commercial property insurance valuations require an on-site inspection to note the building materials, take measurements and evaluate specific location factors.
However, it may be possible to prepare a desk based review using web based data and information provided by the property owner.