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What a reinstatement cost assessment does
The amount a property could sell for is not the same as the amount it would cost to rebuild. A reinstatement cost assessment estimates the likely cost of reconstructing a building after substantial damage or total loss, so the declared value used for buildings insurance is based on the property itself rather than its market price. We inspect the building, review the available information and prepare a clear assessment in line with the current RICS professional standard.
What it is
What it includes
A reinstatement cost assessment estimates the cost of rebuilding your property if it were completely destroyed, including demolition, site clearance and reconstruction, along with professional fees and cost of meeting current building regulations. It takes into account the building's construction, size, specification, location, as well as any features that could make rebuilding more complex.
Why it matters
Having an accurate figure helps ensure your buildings insurance is set at the right level, reducing the risks of being underinsured.
What it is not
The assessment is prepared for insurance purposes only. It is not a market valuation, a condition survey or advice on the terms of your insurance policy.
When you might need a reinstatement cost assessment
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Your current declared value is based on an assessment a few years ago
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You are buying, refinancing or arranging new insurance or switching insurer
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The building has been extended, refurbished or altered since it was last assessed
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You are responsible for a commercial, mixed-use, listed, unusual or high-specification property
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You manage a portfolio and need a consistent basis for reviewing insurance values
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An insurer, lender, landlord or managing agent has requested a professional assessment
What we do
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Review your requirement, the insurance basis and information available
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Inspect and measure the property, checking its construction and relevant external features such as outbuildings, boundary walls and driveways
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Identify features that could affect demolition and rebuilding costs
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Apply current construction-cost data, adjusted for your location and the practicalities of rebuilding
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Include allowances for professional fees and the cost of meeting building regulations
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Provide a clear written report setting out the recommended declared value, with our assumptions, exclusions and limitations
How it works
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Initial consultation. We confirm the property, purpose, scope and information required.
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Information review. We review plans, area schedules, previous assessments and relevant policy information where available.
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Site inspection. A chartered building surveyor measures the building's size, records construction, use and material features.
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Assessment. We calculate the estimated rebuilding cost using current cost information and property-specific allowances.
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Report. You receive the recommended declared value together with the basis of assessment, assumptions and exclusions.
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Review. We talk the report through with you and answer questions about the assessment.
Why Acton & Co
A chartered building surveyor handles the instruction from inspection to report.
RICS regulated, with the assessment prepared in line with the current professional standard.
Property-specific advice rather than relying on market value or a generic square-metre rate alone.
Experience across residential, commercial, mixed-use and complex buildings in London and Kent.
A clear report showing the figure, basis, assumptions and limitations.
Frequently asked questions
It is an estimate of the likely cost of rebuilding a property after substantial damage or total loss. It is used to help set the declared value for buildings insurance.
No. Market value reflects what a property may sell for. Reinstatement cost reflects demolition, rebuilding and related costs, so the two figures can be very different.
The scope depends on the instruction, but it typically considers demolition, site clearance, rebuilding, professional fees and statutory requirements, together with property-specific factors.
An inspection allows the surveyor to understand the building's size, construction, use, specification and any features that may materially affect the cost of rebuilding it.
As a general guide, we recommend a full reassessment every three to five years, with the sum insured index-linked in between to keep pace with changing construction costs. Commercial, listed and high-value properties may benefit from more frequent review, and some insurers, lenders and managing agents set their own requirements.
You should also arrange a new assessment sooner if the property has been extended, refurbished or significantly altered, or if construction costs have risen sharply since your last assessment.
Yes, subject to the scope and the information available. Listed, historic, high-specification and unusual buildings often require more property-specific analysis than a standard calculator can provide.
