2 minute read
If you are a landlord who owns multiple properties, then you may want to think about getting a building reinstatement cost assessment done. An insurance assessment is the best way for you to protect yourself, should anything happen to your property. Want to find out more? Take a look below.
How Often Should A Reinstatement Cost Assessment Be Done?
Under RICS guidance, getting an annual rebuild cost assessment done is recommended so any inflationary effects can be taken into account. A major review should be done every 3 years, or sooner should you make any structural changes to the property. Energy prices are at an all-time high, and when you take into account rising labour costs and shortages, you’ll soon see why getting this assessment done is crucial to the success of your property. Completing an assessment is very easy too, and it usually involves you just filling out some simple details about your property.
What Is A Building Reinstatement Cost Assessment?
As a property owner, you have to make sure that your investment is safeguarded from any threats. The only way for you to do this would be for you to get it insured. An RCA is the best way for you to assess the value of a property accurately, whether you have one property, or one hundred. This assessment covers commercial, industrial and residential blocks & properties.
What is Reinstatement?
Reinstatement assessments stop you from underinsuring your property. If you over-insure your property because you miscalculate commercial rebuilding costs for insurance, then this will mean that you end up paying a premium for your insurance and this can significantly lower your profits. This is especially problematic if you are dealing with a very small portfolio. If you are dealing with a large portfolio, then the effects can be just as damaging. One way for you to work around this would be for you to get a reinstatement assessment done, so you can feel confident in the price you’re paying for your insurance.
Do I Need A Reinstatement Cost Assessment?
You should get a reinstatement cost assessment done if you own a property as a landlord in the UK. Studies have shown that over 70% of properties in the UK are underinsured. Reinstatement costs help to take into account the costs of repairing, replacing and ultimately, rebuilding a property should a disaster occur. Without it, you run the risk of not getting the payout you need from your insurance. This can devastate your financial health and security, so it is imperative that you take steps to stop this from happening by taking out the right policy with the right coverage.
How Do I Find The Reinstatement Value Of My Property?
One way for you to find the information you need would be for you to go through a management service, like ours. We can help you to stay up to date with the latest news in the industry while also freeing up your time, energy and money in regard to property management.
So, if you’re looking for a professional and reliable property management company, look no further than BPS. Get in touch with us today to arrange a free 30-minute consultation to discuss your property needs.