Reinstatement Valuation

A reinstatement valuation is the estimated amount for which your home or building should be insured and the cost associated with its reinstatement should the property be destroyed (in a fire, for example). It assumes a total – loss scenario and therefore includes costs of demolition, site clearance, estimates of materials, labour and professional fees.

In many instances, proper insurance is a specific requirement under the terms of a commercial lease, or a policy that is required by mortgage lenders prior to lending.

Arnold & Baldwin can provide professional advice on the estimated reinstatement costs of your asset for insurance purposes, ensuring the continued protection of your investment. Our valuations use the most up to date data provided by the Royal Institution of Chartered Surveyors Building Cost Information Service.

When insuring your home or building, it is not generally suitable to insure it against its sale price or current market value. A reinstatement valuation should be undertaken to ensure a more accurate valuation for insurance purposes.

Just one of the many ways we go above and beyond to protect your investment.

NOTE: This service requires registration and only allows a limited number of uses per user per year.

Although the valuation will be based on objective analysis, it is important to recognise that the methodology behind it is not just a science, but an art, wherein the expertise and intuition of individual experts will play a part, hence why a Market Valuation is a professional opinion of value.

It is important to recognise that a valuation is not a survey and although a Market Valuation may provide a brief overview of the size, condition and location of the property, it is valuation focussed and will not comment further on any defects or other factors that do not materially affect the value of the property.

Surveys highlight defects that may not be obvious to an untrained eye. Some of these defects can get progressively worse over time if they are not remedied immediately after moving into a property. The Royal Institute of Chartered Surveyors (RICS) found through research that 17% of these cases ended up paying more that £12,000 on average.

Some defects highlighted in a survey can be very costly. This can be taken into consideration when renegotiating the purchase price. On the other hand, defects can be raised to the seller, and you may be able to request these issues be rectified before the purchase is complete.