Getting the sum insured right is one of the most important conversations a broker can have with their clients. While many properties continue to be insured using estimates, historic figures or market values, the true cost of rebuilding following a major loss can be significantly different.
A Reinstatement Cost Assessment (RCA) provides an independent calculation of the full rebuilding cost, helping policyholders ensure they have the right level of protection when it matters most. Importantly, an RCA is not a market valuation. It considers the cost of completely rebuilding a property following total destruction, including demolition, debris removal, professional fees, compliance with current Building Regulations and other associated costs that are often overlooked when setting sums insured.
Without an accurate assessment, policyholders risk underinsurance and the potential application of average following a claim. Equally, overinsurance can result in unnecessarily inflated premiums. An RCA helps establish the true value at risk, ensuring the right balance between adequate protection and cost-effective cover.
QuestGates has carried out valuations for a diverse range of property types, including:
• Agricultural properties
• Ecclesiastical buildings
• Educational facilities
• Healthcare facilities
• Hospitality venues, including pubs, restaurants, hotels, theatres and cinemas
• Industrial and commercial units
• High net worth residential properties
• Residential property management portfolios
• Sports stadia and grounds
This is by no means an exhaustive list!
Why should brokers recommend a Reinstatement Cost Assessment?
• Protects clients from the financial consequences of underinsurance
• Provides an independent assessment based on recognised RICS guidance and industry best practice
• Removes reliance on estimates, historic figures and market values
• Ensures demolition, debris removal, professional fees and regulatory compliance costs are properly considered
• Helps ensure premiums reflect the true value at risk, avoiding unnecessary overinsurance
• Supports stronger broker-client relationships through added-value risk management advice
• Encourages regular reviews to keep pace with inflation, construction costs and legislative changes
Reinstatement costs can be influenced by a range of factors, including local construction costs, planning requirements, listed building status, professional fees, inflation and changing legislation. These complexities make professional guidance invaluable when setting sums insured.
Whether it’s a village church, a sports stadium, a hotel, a farm building or a residential portfolio, QuestGates has the expertise to help brokers and their clients understand the true cost of rebuilding and ensure cover is arranged with confidence.
They welcome everything from straightforward commercial premises to specialist and complex property risks.
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