How much would it cost to rebuild your commercial property?
In our latest blog Phil Bone explains the importance of accurate Reinstatement Cost Assessments for commercial property owners.
You never think it will happen to you, and hopefully it won’t, but disaster can strike at any time and every business needs to consider what would happen if their premises were flooded or burnt down.
What would your options be? Would you be able to relocate and continue operating from another location or would you have to stay put and fix it? Could you afford to put it right?
Whilst we don’t enjoy forking out every year for building insurance ‘just in case’ something might happen, it is a necessity and one worth getting right. Underinsuring your building just to save a few pounds on your insurance premium could prove to be a terrible mistake.
In the case of there being a claim, a Loss Adjuster would seek to limit the insurer’s liability. If you are 30% underinsured they will pay out 30% less than you require to rebuild your property, how will you make up this shortfall?
On the other hand, if you are over insured, which in the case of a disaster is far better than the former, you are paying out too much on an annual basis, which will add up over the years.
So, who is the best person to accurately value your commercial property? Our advice would be don’t rely on the insurance broker! They are unlikely to know enough about rebuild costs. Don’t base the value on what you paid for the property either. Commercial values are based upon a number of factors including; use, location, condition and land value. Rebuild value is different again and takes into consideration the size, design and materials of the building.
Chartered Building Surveyors are experts in building costs and at Silverstone Building Consultancy we have a wealth of experience in Reinstatement Cost Assessments (RCA’s), which in layman’s terms means we carry out the necessary measurements, assessments and calculations required to provide you with an accurate valuation of your commercial building. This ensures you don’t over or under pay on your insurance and also means that in the worst-case scenario, we would be in a good position to fight your corner in a dispute with a Loss Adjuster.
We use a combination of our own expertise and up to date cost information to assist in calculating the RCA figures and have recently carried out assessments on two large portfolios including 13 properties for Northern Retail Consortium across the North East, and approximately 30 properties for Theakston Estates across the North East and North Yorkshire.
Both portfolios are examples of putting RCA figures against older and historic forms of construction, where we often use the support of other specialists combined with our own knowledge, which enables us to provide a holistic approach to calculating the figures.
If you need further expert advice on RCA’s then please contact a member of the team on 0191 231 4263 – we would love to help.