Insurance Valuations – Sydney
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Property Valuation for Insurance Purposes
An independent Insurance valuation is the best way to safeguard the value of your assets. Whether you own a house, strata property, home unit, commercial or industrial property it pays to protect it. An accurate building insurance valuation gives property owners the peace of mind that in the unlikely event of loss or damage, their property will be fully covered.
Choice Property Valuation has highly trained property valuers with the technical knowledge, skills and experience to provide expert advice in all areas of property. We are certified property valuers with membership at the Australian Valuers Institute. Because we live and work in Sydney we know the building construction cost’s of its various suburbs. We have experience in all building types along with forecasting the estimated time frame associated with redesign and construction.
We are happy to liaise with your nominated onsite contact (owners corporation representative) to arrange an onsite inspection. Every courtesy is granted to owners and tenants alike to make sure they are not inconvenienced in any way.
Is your property’s rebuild value for insurance accurate?
Did you know the cost of building a new home has increased four-fold over the past 20 years? If there’s a significant time gap since your last property Insurance valuation it would be a smart move to get a new building insurance valuation.
The Owners Corporation was over-insured by $2,842,000?
Christopher Welch the treasurer for strata plan 30699 at Sussex Inlet NSW suspected that their strata property was over insured so he contacted Choice Property valuations for a professional assessment.
Chris informed us that “It had been over 10 years since their last insurance reinstatement valuation and that the current sum insured for their property is $14,102,000.”
We conducted a site inspection of the property …
- We compared the current strata plan with the existing buildings to determine if their had been any new renovations or extensions that could affect the rebuild value.
- We assessed the site access for removal of debris and delivery of new building materials.
- We also checked current council regulations and building codes which could have an affect on the rebuild value such as bush fire zoned areas or energy saving requirements of the rebuild materials.
The insurance replacement valuation report that we conducted found that $11,260,000 was a sufficient sum to cover all insurance rebuild value contingencies. A reduction of $2,842,000 was achieved which obviously led to a substantial yearly saving on insurance premiums. Over 5 years x $3,000 per year = $15,000 saving in insurance premiums.
Conversely I’ve found properties under-insured by Millions of dollars. Either way it makes sense to get a professional assessment at least once every 5 years.
Building Replacement Cost Valuation for ‘The Anchorage’ – Sussex Inlet NSW 2540
Built circa 1986 – the development consisted of 7 buildings comprising of residential units & townhouses. Amenities include pool, tennis court, 3 timber jetties and boat storage area.
Why engage an Insurance Valuer?
A building insurance valuation provides a solid basis for the declared insurance values. In the event of a claim having a professional insurance valuation can greatly simplify and streamline the claim process. This can help prevent ensuing investigations by the insurer that can lead to a protracted claims process and delayed settlements which can take months or even years.
Insurance policies in Australia also place the burden of estimating rebuilding costs on the policyholder and it’s the policyholder that faces the financial consequences of under-insurance in the event of a total loss.
Choice property valuation provides independent property valuation reports for insurance purposes. You need an expert in this field as the industry is ever-changing, factors like new legislation, fire regulations, heritage-listed materials, fire combustible and toxic materials add to the complexity of the valuation process. We provide valuations for all types of properties.
What are the benefits of having a professional valuation?
- Save money by not paying excessive premiums due to over insurance
- In the event of a claim, you can avoid the financial consequences of underinsurance
- Fast-tracked claims process without disputes around the insured values
- Minimised interruption to business operations
How much does a Replacement Insurance Valuation cost?
The Valuer is sometimes called a ‘Commercial Building replacement cost estimator’ undertakes an inspection of your property and checks building plans, dimension, architectural features and level of finishes. The valuer provides an insurance valuation report, the assessment also takes into consideration site access, council regulations, heritage listing etc. The fees below are for the Sydney metroplitian region.
Fees and Quotes
We prefer to quote each job individually to provide the most competitive price for each job.
As no two properties are the same, for example …
- 10 prestige Units at Bondi located on a cliff face = $500 + GST
- 10 Units at Liverpool on a flat regular block = $300 + GST
Send us the address or list of properties and we’ll provide you with a competitive quote price.
We are happy to quote on jobs to keep the competition honest.
It is false economy to try to save a few hundred dollars on professional fees if in so doing you put at risk hundreds of thousands or possibly millions of dollars’ worth of property.
As mention above, we carry out …
- Strata Property Insurance assessments on behalf of the Owners Corporation
- Retail Property Insurance Valuations
- Commercial Building replacement cost estimator assessments
- Industrial Property Insurance Valuations
- Industrial Special Risks (ISR) policy valuation
- Community, Neighbourhood & Precinct Property Insurance Valuations
Quotations vary due to the complexity of the task please contact our office for an obligation-free, written quotation.
Update Assessment – Once we have your property details on file we can update your valuation report annually over the following years. These reports are a desk top review of the property whereby the sum insured is updated. These reports take less time and cost considerably less than the initial report. However, you should get a full review and re-inspection of your property at least once every 5 years.
Building Insurance Valuation
Darling Street, Balmain NSW 2041
Built Circa 1880 Commercial Building with Retail Shops and Offices – Ground level, shop no.363 has an internal mezzanine level. Level one has access to a barrel loft area (level two) that contains further office space.
Insurance Valuation Property
Wentworthville NSW 2145
Built Circa 2008 – Residential Apartment building containing 18 home units with Basement Car Parking.
Why do I need a new replacement insurance valuation every 5 years?
Insurers generally encourage the Owners Corporation to review their level of cover each year on renewal of the policy. Even if the property owners accurately assessed the initial rebuilding costs, there is a strong risk that they will become underinsured.
The sum insured is increased annually by the insurer but after 5 years a significant gap can arise. ASIC has identified three measures used by insurers to increase the sum insured under their policies: the consumer price index (CPI), the house building index (HBI) and a specialist building cost index, known as CHIP. Between March 2000 and March 2005, the HBI increased by 12%, the CPI by 17%, and CHIP by 33%.
Adding a 5 to 10 percent increase to last year’s sum insured figure is simply just not good enough.
Furthermore, it was found that property owners generally failed to increase the sum insured following renovations and improvements to their property. For example; a 2003 survey by the Royal Automobile Club of Victoria (RACV) found that 24% of homeowners did not increase the level of cover after renovations costing between $20,000 and $40,000.
Insurance Valuation Property
Prestons NSW 2170
Industrial factory and Warehouses buildings. Comprise 4 adjoined buildings with single storey high bay clearances built circa 1980’s. Part brick walls and part steel portal framed constuction.
Our Commercial building replacement cost estimator assessment – $8.4 million – demolition fees $560,000
What is an Insurance Valuation Report?
An insurance valuation report includes a detailed description of your property, colour photographs and summary of the costs that make up the valuation. It’s an estimate of the actual cost to rebuild the building at the time of the valuation, assuming a total loss situation and a reinstatement with a new building(s) of similar size and materials.
An Insurance Valuation Report includes an …
- Estimated of the current construction costs to construct a similar building (Rawlinsons Construction Cost Guide)
- Allowance for cost escalation during the insured period and rebuilding process.
- Cost of demolition and site clean-up,
- Professional fees, town planers, architects, engineers and
- Council fees and other costs depending on the type of property.
The sum insured include all costs that would be included in replacing the building.
Common exclusions from insurance replacement valuation report are:
- Tenants’ property
- Loose furniture and equipment
- Temporary accommodation
- Loss of revenue
- Finance costs
Building Replacement Cost Valuation
Weston Street, East Balmain NSW 2041
Circa 1930 – Two Storey Residential Brick Duplex Building with common laundry and car parking, Construction – cavity brick walls, timber floors & windows and tile roof.
Strata Title Properties
The Owner Corporation (Formerly Body Corporate in NSW)
It’s the Owners Corporation’s responsibility to maintain appropriate insurance cover to comply with regulatory requirements. For strata title properties, a building Insurance valuations need to comply with section 160 and section 161 of the ‘Strata Schemes Management Act 2015’. The act states that the owner’s corporation for a strata scheme must insure the building. And keep the building insured under a contract of insurance
- And insures the building under a ‘damage policy’ … if it is destroyed or damaged by fire, lightning, explosion or any other occurrence specified in the policy.
- A ‘damage policy’ for a building must be with an approved insurer,
- Be in the name of the owner’s corporation, and any other person required to insure under Section 160
Building Replacement Cost Valuation
Sydney Road, Manly NSW 2095
Two storey suburban Retail building, built circa 1960’s. Constructed on a 454sqm irregular shaped parcel of land.
Building Replacement Cost Valuation
Weston Street, East Balmain NSW 2041
Circa 1930 – Two Storey Residential Brick Duplex Building with common laundry and car parking, Construction – cavity brick walls, timber floors & windows and tile roof.
A ‘Damage Policy’ must provide for the following:
- the building is to be insured for at least the amount determined by the regulations,
- if the building is destroyed, the building is to be rebuilt or replaced so that the condition of every part of the rebuilt or replacement building is not worse or less extensive than that part when new,
- if the building is damaged but not destroyed, the damaged part of the building is to be repaired or restored so that the condition is not worse or less extensive than that part when new,
- expenses incurred in removing debris are payable,
- the remuneration of architects and other persons whose services are necessary as an incident to the rebuilding, replacement, repair or restoration is payable.
The 2016 regulations state the manner of calculation for an insurance limit under damage policy as follows;
- For section 161 (1) (a) of the Act, the minimum amount for which a building is to be insured is to be not less than the amount calculated by subclause 2).
- For section 161 (2) of the Act, the amount to which the liability of an insurer may be limited under a damage policy is to be calculated by adding together the following amounts:
a) the estimated cost, as at the date of commencement of the damage policy, of
carrying out the work that a damage policy is required to provide for under section 161 of the Act, and
ii. making the payments that a damage policy is required to provide for under section 161 of the Act,
b) the estimated amount by which expenditure referred to in the preceding paragraphs may increase during the period of 24 months following the date of commencement of the damage policy. - The amounts referred to in subclause (2) (a) and (b) are to be calculated so as to include any applicable taxes, fees and charges (including taxes, fees and charges of the Commonwealth).
Community, Neighbourhood & Precinct Property
Building insurance valuations must comply with Section 39 of the Community Land Management Act 1989.
