Being aware of the potential consequences of under-insuring your property is essential in mitigating risk in the event of a disaster.
Sutcliffe’s team of chartered building surveyors utilise the RICS Commercial Reinstatement Tool software and combine this with over 35 years of experience, to provide a full and comprehensive Building Reinstatement Valuation Report. This report provides certainty for commercial property owners that the sum insured on their asset will accurately/fully cover the cost of having it demolished safely and rebuilt efficiently, following a catastrophic event such as a fire or a flood.
Having an adequate insurance policy is usually a requirement of a commercial lease and any shortfall in the re-building costs is the responsibility of the insured. Many insurance policies are often based on the current market value of a property, and Sutcliffe warns against taking this approach, as it is not the correct way of insuring your property and can often be lower than actual reinstatement costs. By having an accurate Building Reinstatement Valuation Report, our experienced team of building surveyors will advise you on the estimated cost to demolish and rebuild your property following total, or partial, loss. A Building Reinstatement Valuation Report will give confidence to your insurance company to underwrite an accurate reinstatement valuation, giving you peace of mind that your investment is fully protected.
Our reports also factor in VAT, as many charities or businesses with childcare provision are not VAT registered, again leaving a building owner in a challenging situation when they find themselves unable to reclaim the additional VAT at the current rate of 20%. This can result in the failing of many necessary rebuilding projects.
In conjunction with the insurance industry experts, we recommend that this report is revisited on a 3-5 year rolling basis, depending on market forces at the time, to ensure maximum commercial benefit and security.
Sutcliffe are also available to assist clients during the claims process and to design, procure and manage subsequent reinstatement projects.