Rebuild Cost Assessments in Leeds
INSURANCE VALUATION FOR BUILDINGS
Independent rebuild cost assessments, also called reinstatement cost assessments, for buildings insurance. Prepared by a chartered surveyor for commercial property, blocks of flats and homes in Leeds, across Yorkshire and further afield.
WHAT IT IS
What is a rebuild cost assessment?
A rebuild cost assessment, also called a reinstatement cost assessment, is an insurance valuation. It sets out what it would cost to rebuild a building after a major loss, which is different from its market value. Each assessment is prepared by a chartered surveyor, in line with RICS guidance.
The figure is used to set the sum insured on a buildings insurance policy. It generally allows for clearing the site, rebuilding the building as it is now, in suitable materials, and the professional fees involved, so the cover reflects the whole job rather than just the bricks and mortar.
ALSO KNOWN AS
Reinstatement cost assessment
Insurance rebuild valuation
Buildings insurance valuation
Market value
✓ What a buyer might pay on the open market
✓ Includes the land and the location
✓ Used for buying, selling, lending, tax and legal matters
How rebuild cost differs from market value
Market value is what a property might sell for, and it includes the land and the location. Rebuild cost is what it would cost to clear the site and build the property again. The two figures can be very different, in either direction. That is why a rebuild cost assessment is often instructed separately from a market valuation, and why an insurer may ask for one even when a recent valuation exists.
NOT THE SAME AS MARKET VALUE
Rebuild cost
✓ What it would cost to clear the site and rebuild
✓ Excludes the value of the land
✓ Used to set the sum insured for buildings insurance
WHY IT MATTERS
Why the rebuild figure matters
Underinsurance and averaging
If the sum insured is lower than the real cost of rebuilding, the building is underinsured. Many policies include an average clause, which means a claim can be reduced in proportion to the shortfall, even when only part of the building is damaged.
Insurer, lender and lease requirements
Insurers and lenders may ask for an independent assessment to support the sum insured, and many leases require the landlord or freeholder to insure the building for its full reinstatement cost.
Reviewing the figure
Building costs change, and so do buildings. It is good practice to review the figure periodically, and after alterations or extensions, so that cover keeps pace with the building.
WHO IT IS FOR
Rebuild cost assessments for commercial and residential buildings
Much of our rebuild cost work is commercial, but we assess buildings of all kinds.
Commercial property owners
Offices, shops, and warehouse and factory units.
Landlords and portfolios
Single buildings or several properties across a portfolio.
Freeholders of blocks of flats
So the whole block is insured for the cost of rebuilding it.
Management companies and RMCs
Supporting directors and managing agents with an independent figure.
Charities and churches
Older and community buildings that can be hard to value for rebuild.
Listed and unusual buildings
Traditional materials and specialist construction taken into account.
Homeowners
Including period and listed homes, or when insurers ask for a figure.
Brokers and managing agents
Refer a client, or discuss a block or portfolio.
Buying a listed or unusual building? Our RICS Level 3 Building Survey looks at its condition in depth, and a rebuild cost figure can be added.
WHAT IS INVOLVED
How a rebuild cost assessment works
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Tell us about the building
The type of building, its address and what the assessment is for, such as insurance renewal or a lender or lease requirement.
Inspection and measurement
A chartered surveyor inspects the building and measures it, noting its construction, materials and any features that affect the cost of rebuilding.
The assessment
We calculate the rebuild cost in line with RICS guidance, using current building cost information.
Your report
You receive an independent written report with the recommended reinstatement figure, ready to share with your insurer or broker.
Assessments are carried out from our office in Horsforth, Leeds, by our chartered surveyors, led by David J Knight MRICS MISVA, a Chartered Building Surveyor and RICS Registered Valuer who qualified in 1990, with Joe Knight MSc MRICS. Knight Surveys is a family-run practice regulated by RICS.
YOUR REPORT
What you receive
ALSO AVAILABLE
Rebuild cost assessments sit alongside our other commercial surveying services. We can combine one with a schedule of condition, dilapidations advice or a drone roof survey of the same building.
✓ An independent written report from a chartered surveyor, regulated by RICS
✓ A recommended reinstatement figure for buildings insurance
✓ A description of the building and the basis of the assessment
✓ A figure you can share with your insurer, broker, lender or managing agent
FOR PROFESSIONALS WHO REFER CLIENTS
For insurance brokers and managing agents
We work with insurance brokers, block managing agents and property managers whose clients need a reliable, independent rebuild figure. Whether it is a single building, a block of flats or a portfolio, we inspect, assess and report clearly, so the figure can be passed to the insurer with confidence.
QUESTIONS
Rebuild cost assessment questions
Is a rebuild cost assessment the same as a valuation?
It is a type of valuation, but for insurance rather than for sale. A market valuation estimates what a property would sell for. A rebuild cost assessment estimates what it would cost to rebuild it. The two are separate figures, and they are often instructed separately.
Can I use the market value or purchase price as my sum insured?
Not reliably. Market value and purchase price include the land and reflect the property market, while the sum insured for buildings cover should reflect the cost of rebuilding. Using the wrong figure can leave a building underinsured or over-insured.
How often should the rebuild cost be reviewed?
It is good practice to review the figure periodically, and after any alterations, extensions or change of use. Your insurer, lender or lease may also set its own requirements, so it is worth checking with them.
Do you carry out rebuild cost assessments for blocks of flats?
Yes. We act for freeholders, management companies, residents' management companies and managing agents. The assessment covers the building as a whole, so the block can be insured for the cost of rebuilding it.
Can you assess listed or unusual buildings?
Yes. Listed, historic and non-standard buildings often need traditional materials and specialist trades to rebuild, which a standard calculator may not reflect. A chartered surveyor's inspection takes these features into account.
Can a rebuild cost assessment be added to a survey?
Yes. If you are buying a home, a rebuild cost figure for insurance is available as an extra with an RICS Level 2 Home Survey or RICS Level 3 Building Survey.
REQUEST A REBUILD COST ASSESSMENT
Tell us about the building
Send an enquiry and we'll call you to discuss the property, or we can email the fee quote if you prefer.
CALL
0113 293 0600
admin@knightsurveys.co.uk
VISIT
Network House, Lister Hill, Horsforth, Leeds LS18 5AZ
