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Building Insurance Valuations Sydney

building insurance valuations sydney

Building insurance valuations Sydney wide is not something to leave to speculation. As experts in the construction and building industry, we know there is a big difference between a market valuation and the actual costs of reconstruction. A comprehensive building insurance valuation report will ensure that in the event of an insurance claim you are not left out of pocket.

At Washington Brown, we base our building insurance valuations on the full cost of rebuilding, in the event of total destruction. We don’t do this so you’ll pay a higher insurance premium. We do it to protect your investment. Our building insurance valuation report will outline costs for demolition, site-clearing, professional fees, compliance and reconstruction.

CASE STUDY

Property: Office and storage building
Description: 8 levels above ground comprising inner city storage facilities and office suites with 1 level of basement parking
Age: Built in the 1970s
Location: Melbourne Central Business District, Vic.

In 2009, we were approached by a large property management company to assess the replacement cost of a building that had been newly acquired by one of their major clients. The assessment had already been completed in pre-acquisition stage by a well-known property valuation company, together with their valuation report. Depreciation Quote Schedule

Note that the valuation documents, or any particulars they contained, were not disclosed to us prior to our report preparation. We did not know the purchase price of the property either as the buyer did not want to disclose it at the initial stage.

After reviewing all the documentation provided, and consulting with the property manager, we carried out a detailed inspection. It was in the heart of the city so we scrutinised the accessibility and adjoining buildings which have a major bearing on city construction.

We released our assessment with a recommended amount for the replacement of the building of $30 million. We received a phone call within one minute. The conversation went along the lines of, “There must be a mistake? The client only bought the property for $13 million. The valuation report recommends a replacement value of the building to be $7.5 million. Surely there cannot be such a difference?”

Depreciation Calculator We dissected the report with the property manager and went through all the components that may have caused such a difference. Some of the issues were:

The lessons learned were:

Needless to say this client is still with us today.

To get a quote for a building insurance valuation visit here – building insurance valuations Sydney

About Tyron Hyde

Tyron Hyde is a director of quantity surveying firm Washington Brown. He is regarded as one of the industry's leading experts in property tax depreciation, is regularly quoted in the media & asked to speak at conferences. -