Owners of property often require reinstatement cost assessments of their property portfolios for insurance services. This is known as a Reinstatement Cost Assessment (RCA) and its calculation provides a figure representing the cost to reinstate a property in the event of it being destroyed.
This assessment involves an inspection of the building or property portfolio to understand the age, accommodation and construction, take measurements and run a calculation to industry standards. Often it can include externals areas like carparks etc.., The value is then calculated using the external floor area of the existing building and the latest construction costs provided by the Building Cost Information Service (BCIS), often using a Day 1 policy that is based on the reinstatement cost that makes an automatic allowance for inflation during a reasonably anticipated rebuild period.
It is generally recommended that a Reinstatement Cost Assessment is updated every three years or more frequently if a property has been extended or altered. We are well versed in carrying out such assessments.