W&R Fraser’s Guide to Getting Your Property’s Value Right
Let’s face it – insurance can be a minefield. Between the jargon, the policies, the clauses hidden in fine print, and the real-world disasters that trigger it all, it’s easy for property owners to get overwhelmed. Yet, in the middle of it all sits a little-known hero: the Reinstatement Cost Assessment (RCA).
W&R Fraser, a team of experienced Chartered Surveyors, has seen firsthand how undervalued or poorly assessed properties can leave homeowners, landlords, and business owners vulnerable. That’s why they strongly recommend ensuring your property has a reliable and regularly updated RCA. And when it comes to carrying them out? They point clients to the specialists at Exactum – because getting it wrong isn’t worth the risk.
What Is a Reinstatement Cost Assessment Anyway?
A Reinstatement Cost Assessment (often referred to as a Rebuild Cost Assessment or Building Reinstatement Cost Assessment) determines how much it would actually cost to rebuild your property from scratch after a disaster like a fire or flood.
Not to be confused with market value (which reflects how much your property might sell for), this figure focuses on the costs of demolition, site clearance, professional fees, materials, labour, and compliance with the latest building regulations.
So, if your property went up in smoke tomorrow, the RCA tells your insurer how much they’d need to cover to rebuild it – brick for brick, feature for feature.
Who Actually Needs an Reinstatement Cost Assessment?
Everyone with property, honestly. But here’s a breakdown:
- Homeowners: Whether it’s your main residence or a second home, having an up-to-date RCA ensures your insurance payout is sufficient to rebuild your home fully.
- Landlords: Rental portfolios are major investments. An RCA protects each one from being underinsured.
- Businesses: Commercial buildings often have specialist construction elements and equipment – making rebuild costs trickier to estimate without expert help.
W&R Fraser often works with all three groups and consistently finds that RCAs are either outdated or missing altogether.
What Happens If You Get It Wrong?
Let’s talk consequences – because this isn’t one of those things where “close enough” cuts it.
- Underinsurance is the biggest risk. If your property’s insured for less than the rebuild cost, your insurer might reduce any payout on a claim by the same percentage. That could leave you footing a serious chunk of the bill.
- Overinsurance, on the other hand, means you’re paying more in premiums than necessary, for no added benefit. That’s just money down the drain.
- Claim disputes can also arise when an RCA is missing, outdated, or inaccurate – delaying your claim or, worse, having it partially denied.
So yes, this seemingly boring document could be the thing standing between you and financial disaster.
Why W&R Fraser Recommend Exactum
W&R Fraser have worked with many service providers in the property industry. But when it comes to Building Reinstatement Cost Assessments, they regularly recommend Exactum to clients. Why?
Well, they’ve got a few good reasons:
- BCIS-Backed Assessments: Exactum uses data from the Building Cost Information Service (BCIS), which is the gold standard in the UK for construction costing.
- Remote or On-Site Options: Clients can choose between remote assessments (great for speed and convenience) or full on-site visits for complex properties.
- Tailored Reports: Every RCA is formatted clearly and customised based on property type, ensuring insurers have exactly what they need.
- Transparent Pricing: Unlike many firms, Exactum are upfront with costs – no surprises, no hidden fees.
W&R Fraser have found that when their clients go through Exactum, the process is fast, accurate, and, most importantly, stress-free.
How Often Should You Get a Reinstatement Cost Assessment?
Short answer? More often than most people do.
Here’s what W&R Fraser advise:
- Every 3 to 5 years: Even if nothing’s changed structurally, materials and labour costs fluctuate.
- After Renovations: Added a conservatory? Converted a loft? Then yes, your RCA needs a refresh.
- Following Regulatory Updates: Building codes are evolving all the time. You’ll want to ensure your rebuild estimate includes the latest compliance requirements.
Remember, insurance isn’t static. Keeping your RCA current means your policy stays relevant – and ready.
People Also Ask: Quickfire Questions on Reinstatement Cost Assessments
Q: Is an reinstatement cost assessment legally required?
Not by law, but it is often required by insurers. More importantly, without one, you’re taking a gamble with your property cover.
Q: Can’t I just estimate the rebuild cost myself?
Sure, and you could also guess how much your car is worth without checking. But you’ll probably be off – and that can cost thousands. Professional RCAs are calculated using verified data and expertise.
Q: What does a rebuild include?
It’s not just bricks and mortar. It includes site clearance, architects’ fees, compliance costs, and rebuilding to modern standards – not just how it was originally built.
Q: Do reinstatement cost assessments affect insurance premiums?
Yes. An accurate Reinstatement Cost Assessment can help avoid inflated premiums due to overinsurance, or reduce the chance of claim reductions due to underinsurance.
One More Thing…
Insurance is one of those things you don’t think about until you need it – and then suddenly, it’s all you can think about. W&R Fraser know the frustration of seeing clients lose out simply because their insurance didn’t match the true rebuild value.
Whether you’re protecting your family home, a portfolio of properties, or your business premises, taking the time to get an RCA done properly makes all the difference.
Need a starting point? Exactum offer straightforward, reliable assessments that W&R Fraser are proud to recommend.
Final Thoughts
In property, assumptions are costly. That’s why W&R Fraser constantly remind their clients: an up-to-date Reinstatement Cost Assessment is one of the most important (yet underrated) pieces of the property protection puzzle.
So, next time you renew your policy – or make a change to your building – ask yourself: Do I really know how much it would cost to rebuild this place?
If there’s even a flicker of doubt, it’s time to get it checked.
For a trusted service that gets it right the first time, W&R Fraser recommend you speak to Exactum today.
Or for more insurance tips from the LDS blog click here.
