- By Matt Hemming - Partner and 5D Quantity Surveyor
- Dec 09, 2023
The Recent Building Price Spikes Have Impacted Insurance Values!
In the past two years, we have seen a significant increase in the number of requests for Replacement Cost Estimates, which is a natural trend when building prices dramatically shift – as we have recently witnessed.So, what is a Replacement Cost Estimate and why is now the perfect time to engage a Quantity Surveyor to ensure you have an up-to-date Replacement Cost Estimate?
Put simply, a Replacement Cost Estimate is a measured estimate that a Quantity Surveyor can provide which indicates the cost that must be spent to replace a current asset in the current market should the unthinkable occur. For example, the price that it would cost you to rebuild your home or place of business in the event it was destroyed by flood or fire.
Why is it so important?
Replacement Cost Estimates are crucial for a number of reasons, but the most significant is insurance. An up-to-date Insurance Replacement Cost Estimate ensures that building assets are accurately covered by your insurance provider in the event of significant damage. Given the volatility of the current market, when paired with the increasing inflation rate, it is imperative to have an accurate Insurance Replacement Cost Estimate on your building assets. Furthermore, our report will provide a comprehensive Replacement Cost Value of the property in the event of a natural disaster or accident, so the property owner will not be left out of pocket should they need to rebuild.
Having a considered estimate position on your asset will also ensure you are not over insuring and paying unnecessary premiums - because as we know, not all assets are the same.
How do we calculate your Replacement Cost Estimate?
Our team of expert Quantity Surveyors will provide a comprehensive replacement cost value of the subject building for insurance purposes, including costs relating to demolition of the existing building, professional fees, estimated construction costs, and cost escalation.
Contact us to ensure your building assets are accurately covered. firstname.lastname@example.org 1800 808 259