Insurance Replacement Cost Estimates
As one of Australia’s leading construction cost consultant firms, MCG Quantity Surveyors are qualified to accurately identify the replacement cost value of individual buildings for insurance purposes.
When accurately determining the replacement cost of any building, many issues need to be considered, including:
1. The demolition and removal of debris and asbestos of the original structure, including all associated consultant fees;
2. The cost of reconstructing a new building considering and revised or amended planning constraints and updated building codes;
3. All consultants fees and preliminaries;
4. Cost Escalations for time taken to complete assessment, design, tender evaluations, construction periods and new policy renewal dates.
In summary, this means MCG Quantity Surveyors will provide a comprehensive Replacement Cost Value of the development in the event of a natural disaster, the property owner will be left out of pocket if they have to rebuild.
An MCG Quantity Surveyors Replacement Cost Estimate could save the client thousands of dollars in the event that their development is currently under insured or not insured at all.
An MCG Quantity Surveyors report will provide you with peace of mind that if the unthinkable does occur - you won't be stuck disputing claims with your insurance provider.
Replacement Cost Estimates for Residential Units
Is your current building insurance up to date?
It is NSW policy that ‘The Owners Corporation’ has a duty to cover all buildings in the Strata Scheme under a Damage policy with an approved insurer. NSW policy notes that a valuation of the building replacement cost must be carried out at least once every 5 years. In turn, the building cover should be increased to reflect the new valuation amount.
This valuation must be carried out by a qualified Quantity Surveyor or valuer.
The only exception to this is that the building cover requirement doesn't apply to 2-lot schemes (referred to as small schemes). This is relates to buildings that are detached and no building or part of the building in the Strata Scheme is situated outside those lots. However, the two owners must decide by unanimous resolution that the Owners Corporation will NOT be taking out building insurance.
Are you adequately insured?
This 'building insurance' includes not only the structure but also the common property fixtures and fittings.
In the NSW Strata Schemes Management Act 1996: Section 82-Damage Policy there's a prescribed method detailing what's to be included when calculating the sum insured for the damage policy. In simple terms the amount is calculated by using the estimated cost of:
1. Replacement of the building;
2. Removal of all debris;
3. Professional fees for architects, engineers and other persons whose services are necessary.
For details of what's included in the definition 'building' refer to the NSW Strata Schemes Management Act 1996: Section 81-Building.
Should you have any further queries or questions regarding Replacement Cost Estimates or additional reporting services, do not hesitate to contact the team at MCG Quantity Surveyors.