Reinstatement cost assessments for residential properties

Surveyors calculating the rebuild cost of a house

There are many factors that affect the rebuild cost of your house. The more unique the property, the more complicated it is to determine an accurate rebuild value.

It’s the responsibility of the home owner to provide an accurate rebuild valuation to get the correct level of insurance cover.

If it’s not accurate, you could pay too high a premium, or more likely, you could be underinsured.

If that’s the case, the insurers are not obliged to pay the full costs required to reinstate the building in the event of a loss. This is applicable no matter what size the valid claim is or the amount of damage to the property. Most policies have a contractual clause which allows the claim to be reduced in the same proportion that the true rebuild cost bears to the value stated in the policy. It’s called Average or proportionate settlement.

A Reinstatement Cost Assessment from BCH is a site-based, RICS compliant survey which will provide you with an accurate rebuild cost of your house. This will ensure that your insurance policy reacts when you need it to – providing the correct financial cover, so you’re not left out of pocket or with repairs you cannot afford.

We can also offer our desk-based Benchmark e-valuation service for residential properties with a value up to £2M.

The hard market in insurance is undoubtedly leading to higher premiums and a tougher stance on claims. This is not a good time to be underinsured, as policyholders may suffer a shortfall in pay-out on an otherwise valid claim at a time they can least afford it.

  • Market Analysis
Infographic showing underinsurance comparison
Our surveys show 81% of properties across the UK are only insured for 61% of their actual value.

The risk of underinsurance for residential properties is very real.

Fact — should a property be under insured, the insurers are not obliged to pay the full costs required to reinstate the building.

They are likely to apply the Condition of Average Clause, whereby the amount of claim is reduced proportionally to the value of under insurance.

Should this occur, the property owner or managing agents (where appointed), will be liable for any shortfall in the insurance settlement.

A scenario most home owners would find very challenging, especially when it could have been so easily avoided.

  • Facts & Figures

How the value of a property can be affected by market forces.

A pile of bricks
How do you account for the changing costs of building materials?

See this report published by The Guardian newspaper which demonstrates how the cost of rebuild can be so easily affected and how it impacts on the value of your property.

Timber has gone up more than 80% in the past six months, while copper and steel prices have jumped by 40%.
The Guardian, Saturday 8 May 2021
An RCA by BCH covers 31 categories and 83 items.

A fully compliant buildings insurance appraisal for your home.

A Reinstatement Cost Assessment from BCH has been developed over more than 10 years of practical application to over 50,000 properties.

Making a buildings insurance appraisal from BCH one of the most dependable on the market.

BCH Reinstatement Cost Assessments are RICS compliant.
RICS logo