Reinstatement Cost Assessment

Market value is what the property would sell for, and it includes the land. Reinstatement cost is what it would cost to rebuild the building from scratch, including demolition, site clearance, professional fees and statutory costs. The two figures are often very different, and the reinstatement cost is the one your buildings insurance should be based on.

We recommend a full assessment at least every three years, with the figure index-linked in the years between. You should also reassess after any significant alterations or extensions, or if you haven't had an assessment carried out in recent years.

Most policies include an "average" clause. If your sum insured is too low, your insurer can reduce any claim in proportion, even for partial damage. For example, a building insured for 70% of its true reinstatement cost could see a claim payout cut by about 30%.

Yes. We carry out reinstatement cost assessments across London and the South East, from single commercial units and mixed-use buildings to blocks of flats and multi-site portfolios. Get in touch for a fixed-fee quote.

Yes. We inspect and measure every building on site, because an accurate assessment depends on the actual floor area, construction and quality of finishes. Figures based only on drawings or an online calculator often miss details like basements, rear additions or high-specification fit-outs, which can significantly change the rebuild cost

It depends on your circumstances. If you can't recover VAT, it should usually be included in the sum insured, because you would pay it on any rebuilding work. We'll confirm with you how VAT should be treated and set it out clearly in the report.

Most leases require the freeholder to insure the building for its full reinstatement cost, and leaseholders pay for that cover through the service charge. An independent RICS assessment shows you're meeting that obligation and gives leaseholders a figure they can rely on. It also protects you if the premium or the sum insured is ever challenged.

We usually carry out the inspection within a few days of your instruction and issue the report within 5–7 working days. You'll receive a clear written report setting out the reinstatement figure, how it was calculated, and what it includes and excludes, ready to pass straight to your insurer or broker.