Building Replacement Insurance Valuations
We have been monitoring a building that had a major fire and the time taken just to demolish the old building was 6 months.
Value of the Building Replacement Costs
The calculated value of the building comprises of several elements:
- Present Building Costs.
- Allowance for Cost Escalation during the lead time of planning, calling tenders, and fitout.
- Professional Fees.
- Removal of Debris.
Cost Escalation is the allowance made for price increases of costs incurred in re building such as Engineering Fees and Materials.
With the rising of extreme events in north Queensland over the last couple of years, With Cyclone ITA. It is a timely reminder that Risk Management of the Value of an Insurance Valuation to determine if the building is under-insured. Best Practice in the industry is having a review of the replacement insurance every 5 years, with this requirement written into body corporate and Strata legislation .
Northern Queensland has experienced I dramatic rise in the premiums and is certainly a contentious issue, with the excessive premiums from the insurance companies making it harder for owners. Strata Community Australia has embarked on a campaign to bring these issues to the insures and getting some common sense back in the market.
Contact www.iigi.com.au today to make sure your property is correctly insured because insurance valuations for body corporate is our business.