Learn more about building insurance valuations with the answers to these frequently asked questions.
How often is a building insurance valuation needed?
The Strata Schemes Management Act stipulates that a building replacement cost estimate is required every 5 years. Keep in mind that once Washington Brown completes the initial report for you, all subsequent reports will be charged only as a revision fee and there will be no need to waste your own time gathering documentation again!
Who is qualified to complete a building insurance valuation?
The strata schemes management act stipulates that a qualified Quantity Surveyor or Valuer can complete a building insurance valuation.
Why use a Quantity Surveyor and not a Valuer?
An established Quantity Surveying company will have built up a database of knowledge and experience built up over the years on market trend dealing with builders and developers will utilise estimating techniques necessary to determine the cost of construction required for insurance purposes.
Valuer’s also provide estimates for insurance purposes in conjunction with their valuation reports. The Australian Institute of Quantity Surveyors has noted that typically, this is a market valuation and is not the same as the costs of construction and this estimate can vary considerably over or under the actual costs of construction. A Valuer’s report may not include all the facets that a properly prepared report by Quantity Surveyors.
Is a building insurance policy compulsory?
YES and NO. All Strata Schemes greater than 2 lots are required by law to have adequate insurance in case of total destruction. However a 2 lot scheme, if each lot is freestanding and no part of the lots verge on common property can elect not to take out insurance.
We recommend that a policy should be taken out on all buildings. The peace of mind for maybe destruction of one of the greatest monetary assets you will own should far out weigh the premiums attached! Would you risk not taking out comprehensive insurance on a new car?
What should a building insurance valuation estimate allow for?
A detailed building insurance valuation estimate should basically represent the full cost of rebuilding in case of total destruction. The report should include all facets associated for this scenario that includes costs such as demolition, site clearing, professional fees, compliance costs, and reconstruction plus allow for a reasonable time for documentation and construction as well as factoring in inflation.
How do I check the that your firm are qualified Quantity Surveyors?
The Australian Securities and Investment Commission (ASIC) in their report published in 2005 identified the significant level of over and under insurance of property by owners the same report also identified a properly qualified Quantity Surveyor as the best professional to accurately estimate a replacement cost for insurance purposes.
Members of the Australian Institute of Quantity Surveyors are properly qualified to complete building replacement cost estimates. All members are subject to high professional standards and code of conduct.
You can check for members at www.aiqs.com.au
Why use Washington Brown to complete my building insurance valuation?
- We are members of the Australian Institute of Quantity Surveyors
- We have Professional Indemnity insurance of 10 million dollars
- Established for 30 years, we have built up an extensive database of knowledge and experience within the construction industry
- We provide construction cost advice for major banks like the Commonwealth, Suncorp and St. George. We have access to real historical construction cost and planning data that only panel members can utilise
- As industry leaders for more than 30 years, we boast an extensive client list of developers including Meriton, Valad Property and Walker Corporation. This is testament to our expertise
- We estimate construction costs for approximately 2 billion dollars worth of buildings each year
Talk to one of our experienced building consultants now! For an obligation free discussion call 1300 99 06 12 or email us.