RICS Redbook Rebuild and Reinstatement Insurance Valuations

When you get a home insurance quote, most insurance providers will ask for an estimated rebuild or reinstatement cost. The first question most people ask is:

What is rebuild or reinstatement valuation?

If your home was completely destroyed in a fire or flood, the rebuild value (also known as a reinstatement value) is the amount it would cost to rebuild the property from the ground up.

Rebuild / reinstatement value includes:

• The fees for professionals, e.g. engineers, architects and surveyors.

• The cost for demolishing and removing what remains of the original property from site.

• The cost of materials, plant and labour needed to rebuild the property to the same standard as the original property.

Its important that the rebuild cost that you provide your insurer for them to base their quote on is accurate. If you over estimate, you will pay more than you need. If you estimate is too low, you will end up having to pay the shortfall in the event of a claim.

Can the rebuild value be higher than the properties market value? 

The rebuild cost can be higher than the market value. An old timber framed cottage will more to reinstate than a modern brick-built home, materials and labour would both be more expensive. 

Can I estimate the value online Myself?

You can do an estimate yourself on an online property calculator such as The Building Cost Information Service (BCIS), which is part of the Royal Institution of Chartered Surveyors (RICS), but this tool is limited and in our opinion is only suitable for standard construction modern properties.

When should I contact Valuation Go?

If your property falls into any of the following categories it’s worth arranging an independent assessment to determine the rebuild value:

• Properties made of non-standard materials (anything other than brick).

• Listed buildings, or homes with historical significance.

• Properties built to a high finish quality standard.

• Properties with special design or architectural features.

• Properties with large high end hard landscaped areas.

Also contact us if you are in doubt and have questions, or if you don’t want to take the risk of valuing your property if it is modern or traditional construction.