The quiet crisis inside most buildings insurance policies.
In a rapidly shifting economy, the gap between what a building is worth and what it costs to rebuild is widening at an alarming rate. Discover why your current valuation might be leaving you dangerously exposed.
Your building is probably insured for the wrong amount.
Market value and rebuild cost are not the same figure yet most property owners confuse the two. The consequences of getting this wrong can be financially devastating.
Overinsured in rural areas
A countryside property worth £800k may cost only £320k to rebuild. You could be paying premiums on a £480k fiction.
Underinsured in urban areas
A city-centre flat worth £350k could cost £510k to rebuild, leaving a six-figure shortfall precisely when you need it most.
A RICS-regulated RCA eliminates the guesswork
Our assessments use live BCIS data and local site knowledge to give you the one figure that actually protects you.
The “Averaging Clause” Trap.
If you are underinsured by 40%, the insurer doesn’t just pay up to your limit. They reduce your entire claim by 40%.
Scenario: The Reality Gap
The Payout Result
Even if you have a claim for £100,000, the insurer applies the 40% reduction based on your total underinsurance.
The Surge in Construction Materials.
Global supply chain volatility and labour shortages have pushed rebuild costs up by over 25% since 2019. If your valuation hasn’t been updated since 2021, you are almost certainly underinsured today.
Rebased cost index, 2019–2024
Why RICS & BCIS Matter.
Rebuild Cost Assessment Ltd is a RICS Regulated firm. We use Building Cost Information Service (BCIS) data, the industry standard for surveyors, combined with local site knowledge to provide a figure you can stand behind.
Regulated
Strict adherence to Royal Institution of Chartered Surveyors standards.
Data-Driven
Access to live BCIS construction indices for accurate, up-to-date figures.
Defensible
A certified RCA report provides leverage during claim disputes.
The Rebuild Cost Assessment Lifecycle.
Baseline RCA
Full site or desktop professional valuation.
Annual Indexation
Adjusted by policy indexation rates.
Annual Indexation
Continued monitoring of inflation.
Major Re-evaluation
RICS recommends a full review every 3 years.
Get in Contact.
Phone
020 3178 8099
info@rca-ltd.com
Address
17 Hanover Square London W1S 1BN
Your assets, accurately valued and fully protected.
Frequently Asked Questions
Learn how rebuild cost assessments work, why RICS compliance matters, and how to avoid costly underinsurance.
What is a rebuild cost assessment?
A rebuild cost assessment (RCA) calculates the total cost to rebuild your property from scratch after a total loss. This includes demolition, professional fees, materials, and compliance with current regulations.
Who needs a rebuild cost assessment in the UK?
Property owners, landlords, commercial asset managers, and leaseholders responsible for insurance all need RCAs to ensure their buildings are insured for the correct rebuild value.
Why is a rebuild cost assessment important?
Without an accurate RCA, you risk under-insurance. This can lead to reduced claim payouts under the Average Clause, leaving you to cover significant rebuild costs yourself.
How is reinstatement cost different from market value?
Market value reflects what a property sells for. Reinstatement cost reflects the cost to rebuild it, often significantly higher due to construction costs, fees, and compliance requirements.
Do I need an RCA for insurance purposes?
Yes. Insurers rely on accurate rebuild values. Without an RCA, you are estimating, which increases the risk of being under or over insured.
How is a reinstatement cost calculated?
It is calculated based on building size, materials, specification, location, demolition costs, professional fees, and current construction rates, not purchase price.
How long does a rebuild cost assessment take?
Most assessments are completed within 48 hours after inspection. Larger or more complex properties may take slightly longer to ensure full accuracy.
What happens if my property is underinsured?
If underinsured, insurers can reduce your claim payout proportionally. This means you may not receive enough to fully rebuild your property after damage or loss.
Do I need an RCA for a commercial property?
Yes. Commercial properties often have higher rebuild complexity and cost. An RCA ensures your insurance fully reflects the risk and scale of the asset.
Can I estimate rebuild cost myself?
Online calculators can give rough estimates, but they often miss key costs. A professional RCA provides an accurate, defensible figure aligned with insurer expectations.