REINSTATEMENT COST ASSESSMENTS
Reinstatement Cost Assessments (RCA's) are an important tool when calculating the total re-build cost in the event of destruction for insurance purposes. The rebuild cost should consider allowances such as statutory and professional fees, demolition and removal of debris and specific site factors such as access, listed buildings and buildings within conservation areas.
An accurate RCA is important to ensure that the property is adequately insured. If your assessment is too low, you run the risk of underinsuring your asset. However, if your assessment is too high, your premiums will be unnecessarily high.
The Royal Institution of Chartered Surveyors (RICS) recommend that an RCA is carried out every 3 years or when significant changes have been made to a property and a desktop evaluation is carried out on an annual basis. Given the recent increase in materials and construction costs, it has never been more important to ensure you are keeping up to date with your reinstatement cost assessments.
If you need help with a Reinstatement Cost Assessment, WGM are ready and available to offer our expert services, contact us now by calling 07735 233 642 or send us a message at: dan@wgm-bc.co.uk.
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WHAT IS A REINSTATEMENT COST ASSESSMENT?
A Reinstatement Cost Assessment (RCA) — sometimes referred to as a Rebuild Cost Assessment — is a professional valuation carried out by a Chartered Building Surveyor to determine the accurate cost of rebuilding a property in the event of total loss or significant damage (for example, due to fire, flood, or structural failure).
This figure forms the basis for setting the correct level of building insurance cover, ensuring the property owner is neither underinsured nor overpaying on premiums.
At WGM, we prepare RICS-compliant Reinstatement Cost Assessments for a wide range of commercial, residential, and mixed-use buildings. Our assessments consider:
- Current construction costs, materials, and inflation indices.
- Professional fees, demolition, and site clearance costs.
- Building configuration and complexity, including listed or heritage elements.
- Regional variations in cost and market conditions.
- Compliance with RICS guidance and insurance industry standards.
Our reports provide reliable, dependable figures that allow property owners, investors, and managing agents to make informed insurance decisions and safeguard their assets with confidence.
GET IN TOUCH WITH WGMWHY COMMISION A REINSTATMENT COST ASSESSMENT
Having a professionally prepared Reinstatement Cost Assessment offers multiple financial and practical advantages — both at purchase stage and throughout property ownership.
1. Ensure Your Property is Correctly Insured
An RCA provides the true rebuild cost of your building, helping you avoid the costly risks of underinsurance or overinsurance.
- Underinsurance can leave you exposed to significant financial shortfalls in the event of a claim.
- Overinsurance results in unnecessarily high premiums, wasting money each year.
A precise RCA ensures your policy reflects the actual reinstatement cost, protecting your investment and your financial position.
2. Conduct During Due Diligence
The ideal time to commission an RCA is during the due diligence phase, before completing a property purchase.
This early-stage assessment allows you to:
- Understand the building’s potential insurance requirements.
- Budget accurately for future ownership costs.
- Combine the assessment with your Building Survey, often reducing overall cost and time.
3. Maintain Accuracy with Regular Reviews
According to RICS best practice, a comprehensive review every three years is recommended — or sooner if the property has undergone significant alterations, extensions, or refurbishments. And a desktop review annually.
This proactive approach:
- Keeps your cover appropriate and up to date.
- Avoids issues with insurers during claims.
- Demonstrates sound risk management and duty of care to lenders or stakeholders.
4. Safeguard Your Investment
Property is often your most valuable asset — ensuring it’s insured at the right level is essential. A professional RCA gives you:
- Financial certainty in the event of loss.
- Peace of mind that your insurance aligns with real-world rebuilding costs.
- Confidence in compliance with RICS and insurance standards.
5. Why Choose WGM?
- RICS-qualified Building Surveyors with extensive experience in valuation and construction cost analysis.
- Tailored reports for all property types — from single assets to large portfolios.
- Option to combine with other surveys (e.g. Building Survey, Dilapidations, Schedule of Condition) for cost-effective delivery.
- Fast, accurate, and fully compliant reports trusted by insurers, landlords, and managing agents alike.
