The quiet crisis
inside most
buildings insurance.
The gap between what a building is worth and what it costs to rebuild is widening fast. 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 reinstatement cost assessment 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.
on a £100,000 claim
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.
Reinstatement 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 reinstatement cost assessment report provides leverage during claim disputes.
The Reinstatement Cost Assessment Lifecycle.
Baseline Assessment
A full site or desktop reinstatement cost assessment establishes your accurate rebuild figure.
Annual Index Update
Your valuation is adjusted in line with current BCIS construction cost indices.
Continued Indexation
Ongoing monitoring ensures your sum insured reflects real-world inflation.
Major Re-evaluation
A full reassessment every 3 years is recommended to maintain full RICS compliance.
Further Reading.
Expert guidance for managing agents, freeholders and portfolio owners on reinstatement cost compliance.
When Should Block Insurance Valuations Be Updated?
RICS recommends every 3 years. Find out why annual index linking alone is not enough and what triggers an earlier reassessment.
Top Risks of Underinsurance for Managing Agents.
From proportional claim settlements to personal liability exposure: the risks managing agents face when valuations are out of date.
Block of Flats Undervalued by £2 Million.
A 24-unit block index-linked annually was found to be underinsured by £2.1 million. See how a professional reinstatement cost assessment uncovered the gap.
Index Linking vs Professional Valuation.
What managing agents need to know about why index linking cannot replace a RICS-regulated reinstatement cost assessment.
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 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 a reinstatement cost assessment to ensure their buildings are insured for the correct rebuild value.
Why is a rebuild cost assessment important?
Without an accurate reinstatement cost assessment, 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 a reinstatement cost assessment for insurance purposes?
Yes. Insurers rely on accurate rebuild values. Without a reinstatement cost assessment, 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 a reinstatement cost assessment for a commercial property?
Yes. Commercial properties often have higher rebuild complexity and cost. A reinstatement cost assessment 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 rebuild cost assessment provides an accurate, defensible figure aligned with insurer expectations.