We find on many occasions that landlords as well as Right to Manage landlords/lessees/Right to Manage companies often have a sum insured that is either more than required or less. Both can cause a large amount of problems such as paying too much for your insurance and/or being underinsured which can cause an issue in the event of an insurance claim. An insurance company will only pay out claims in full if the building is insured for the full reinstatement cost.
iInsure365 have teamed up with RebuildCostAssessment.com. So that our clients can organize a very cheap way of checking that their properties are correctly insured. The company will carry out a desktop valuation for you. Taking into account all of the necessary requirements of the Royal Institute of Chartered Surveyors commonly known as RICS.
How long will an assessment take?
The assessment will take between three to six working days from the acknowledgement of the order. This is for a guide only and some assessments may be completed sooner. If an assessment is believed to take longer they will contact you.
How can I be sure that the information they use to complete the rebuild cost is up to date?
The RebuildCostAssessment.com reports are quality assured. Prior to release by a member of their experienced team. They have access to up to date reinstatement cost data. Available to guide them as to the reinstatement cost information service compiled and maintained by the Royal Institute of Charted surveyors (RICs).
What happens if I input the wrong address details?
It is important and your responsibility to take time to enter the full address in which you wish to be assessed including the postcode.
Does an assessment take into account all the units/outbuildings or are these considered to be separate properties?
Yes, the assessment will include all units and outbuildings within the boundaries of the property. They will be recorded. If they have not been acknowledged on the unit/outbuilding you need to contact them.
The property is currently having building works completed can they complete the assessment to indicate the rebuild cost for completed works?
Part of the assessment is the review of the planning applications and these will be taken into consideration. Yet, they may not be aware of all building works that are subject to planning. It is your responsibility to ensure that any recent development of this nature is given to the company immediately.
Does the online survey take into account the materials the building is made from?
The notes within the report set out what is and isn’t included and you can check these in advance on their website. We will give you details of what’s in the report later.
How long is the reinstatement cost assessment valid for and does it take into account inflation?
The report is valid from the time of the assessment. It makes provisions for inflation or the retail price index (RPI) will be part of the client’s insurance arrangement. But, the inflation provisions can take many forms and you need to check with us. It is your responsibility to ensure that there are adequate levels of cover for the clients building on an ongoing basis. Should you make any significant changes to the property that could affect the property’s reinstatement value such as an extension, mezzanine floor, or new building? You should contact us in this regard.
How would the assessment affect our insurance premium?
This all depends on the filing of the report and the later action that you need to take. It may be as we have stated that you may be over or underinsured, this is known as the average clause. As insurers will only pay the full amount of the claim and will only pay the exact costs incurred it is critical to have an up to date reinstatement cost for the insurance.
Is the information on the property shared with anyone else?
These findings will not be shared with any other parties unless you give them written permission to do so.
What will be in the report?
The report will lay out the following:-
- Client’s name
- Policy number
- Property address and post code
- Date of assessment
- Who it was assessed by and who it was checked by
- Current sum insured such as main buildings, outbuildings, listed and conservation area if required.
- Details of the square meterage of each individual floor.
- Take into account professional fees and demolition if required.
- It will take into account outbuildings.
- Then, it will take into account all the items and give you a rebuild.
- It will give you a detail of how it was calculated.
- Show you details of your property and how it was calculated.
- It will tell you how long a rebuild will approximately take.
- We have therefore informed you of a guideline of how long it will take to rebuild the property.
- It will tell you how often the rebuild assessment should take place.
It will list out the property details by way of description such as:-
- Main building material
- Roof type of material
- Window type of material
- Number of floors (excluding basement)
- Year it was built if listed
- Whether it is residential, commercial usage
- If there is any extension or conservatory
- If there are any outbuildings structural or usage
- Any other permanent structure
- Any car parking or loading bay
- It will have information sources such as Google earth as street view
- Find maps
- Bing maps
- Historic England
- Companies House
- Local authority planning
- Valuation office
- Other industry standard quality surveyor data
- BCIS which is the Royal Institute of Chartered Surveyors data
It will have notes of the assessment. This will tell you what has been taken into account and how it has been dealt with.
For instance, it would include the following:-
- An estimate for rebuilding cost in the event of a total loss
- The external square meterage of the property
When dealing with the cost included in the assessment it takes into account the following:-
- Cost of the removal of debris and architects, consulting engineers, surveyors fees.
- Any sum cover of cost in complying with building regulations or local authority
- It has made an allowance for unique materials
- To take into account the listing of a property
- It will make an allowance for all foundations apart from abnormal foundations
- Make an allowance to external works for the boundary of the property including boundary walls and fences, stone paving including sub base.
It will not take into account the following costs as they are excluded:-
- Basement and sub-basement pilled foundations and ground improvement costs
- No allowance is made for road closures or diversion of major services
- No allowance is made for any required excavation replacement or stabilisation of the land
- Demolishing pre stressed or post tension concrete no allowance is made for this
- No allowance is made for any value in salvage material
- No allowance is made for removal of any hazardous materials or improvements needed to unstable or contaminated land.
- Any fees referred to above no allowance is made.
- No allowance is made for any costs of inflation over the time lapse of the date of the event that results in a need to complete rebuild and completion of that rebuild
- No allowance is made for the tenants fitting out works fixtures and fittings or furnishings. But, in assessing the extent of the building structural services and fittings. They have made a reasonable assumption with respect to the inclusion of items which may have been installed by tenants which by their nature, degree or permanence of the structure
- No provision with respect of the process of plant machinery, fitting out works
- No allowance for temporary supporting or protecting any damaged structure
- Upgrading or improvements of the property
- No allowance is made for the materials and labour involved in rebuilding the property
The rebuild period does take into account that there are many factors when trying to rebuild a property. It is only a guideline in this regard. It is only meant as a guide, not a time frame.
In relation to listed buildings it is important that you speak to the company direct. It can be used for residential and commercial buildings such as a registered office or industrial unit.
The assessment relates to the buildings only and not the contents. Consequently, no allowances have been made for the contents of the building.
It is important that you speak to the company direct as to exactly what is required by you and for what purposes.
It is important to know that keeping your insurance up to date with the correct sum insured can potentially reduce your premium by hundreds of pounds. The cost is not high and we would suggest that you seriously consider carrying this out.