Reinstatement Cost Assessments (RCAs) evaluate, by means of a calculation, the full cost of rebuilding your property, following total loss from one of the insured perils such as Fire, Flood, Subsidence or escape of water (and more).
It is vital that your property insurance is up to date, covering the full cost of rebuilding – RICS recommend that you request an up-to-date RCA once ever three years (allowing you to effectively account for the effects of inflation). However, many housing experts will agree that an assessment should be conducted whenever major renovations are made to the property and when the property is extended thereby increasing its gross floor area.
The final Reinstatement Cost calculation will take into account the building’s size, age, construction, location and associated services and utilities. The more information that is provided, the more accurate the RCA will be.
The calculation is made using the RICS (Royal Institution of Chartered Surveyors) Building Cost Information Service (BCIS) tables based upon the age of property, style, location and gross floor area. The rates used include for demolition and professional fees necessary and reasonably incurred in the reinstatement or repair of a building.
Neglecting to do this, could leave you vulnerable to excessive payments that will not be protected by your insurance company, it is for this reason that many experts consider maintaining an accurate RCA a key responsibility of the home owner.
If your insured amount is insufficient following a loss (you are deemed to be under-insured) ‘averaging’ may be applied by the Insurer. This means that if, for example, you are only insured for 50% of the full cost of repair and the bill for reinstatement comes to £100,000, you will be liable to pay £50,000 yourself. This is why it is so important to make sure your RCA is accurate and up-to-date.
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