Purpose of an Insurance Replacement Cost Assessment

An insurance replacement cost valuation determines the estimated cost to rebuild or reinstate a property's improvements following a total loss. Unlike a market valuation, it assesses the replacement cost of the buildings and associated improvements only and does not reflect the property's market value.

An independent building insurance replacement cost valuation can help:

• Establish an appropriate building sum insured

• Reduce the risk of underinsurance or overinsurance

• Support insurance policy renewals and reviews

• Provide independent documentation for insurers, brokers and body corporates

• Assist with obtaining adequate insurance cover following renovations or building improvements

• Ensure insurance cover reflects current construction and reinstatement costs

What’s Included in Your Insurance Valuation

Every insurance replacement cost valuation is independently prepared by a Queensland Registered Valuer and typically includes:

• Full site inspection and description of the improvements

• Building replacement or reinstatement cost assessment

• Demolition, site clearance and debris removal allowances

• Professional fees, including architects, engineers and consultants

• Construction cost escalation allowances (where appropriate)

• External improvements and ancillary structures (where applicable)

• GST considerations (where applicable)

• Clearly stated assumptions, inclusions and exclusions

• A comprehensive PDF report suitable for submission to insurers, brokers and other professional advisers

All reports are prepared specifically for insurance purposes and are tailored to the individual property and requirements of each instruction.

Frequently Asked Questions 

What is an insurance replacement cost valuation?

An insurance replacement cost valuation determines the estimated cost to rebuild or replace a property's improvements following a total loss. Unlike a market valuation, it assesses rebuilding costs, including demolition, professional fees and other associated expenses required to reinstate the improvements.

Is an insurance replacement cost valuation the same as a market valuation?

No. A market valuation estimates what a property would sell for in the current market, including the value of the land. An insurance replacement cost valuation only assesses the cost to rebuild or replace the improvements and does not represent market value.

Why do I need an insurance replacement cost valuation?

An independent insurance valuation helps ensure your property is insured for an appropriate amount. Accurate building sums insured can reduce the risk of underinsurance, overinsurance and disputes at the time of a claim.

What properties can you provide insurance valuations for?

Woods Valuation Services prepares insurance replacement cost valuations for:

• Residential homes

• Duplexes and townhouses

• Apartment buildings

• Body corporate and strata properties

• Office buildings

• Retail centres and shops

• Industrial buildings and warehouses

• Mixed-use developments

• Other specialised commercial properties

What is included in an insurance replacement cost valuation?

Each assessment may include:

• Building replacement or reinstatement cost

• Demolition and site clearance allowances

• Professional fees (architects, engineers and consultants)

• External works (where applicable)

• Construction cost escalation allowances

• GST considerations (where applicable)

• Assumptions, limitations and report certification

Are your reports accepted by insurers?

Yes. Reports are prepared independently by a Queensland Registered Valuer and Certified Practising Valuer (API) specifically for insurance purposes. They are suitable for submission to insurers, brokers, body corporates and other professional advisers.

How often should an insurance valuation be updated?

Many insurers and industry professionals recommend reviewing replacement cost assessments every three to five years, or sooner where there have been significant building alterations or substantial changes in construction costs.

What areas do you service?

Woods Valuation Services provides insurance replacement cost valuations throughout Greater Brisbane, the Gold Coast and surrounding areas. Services for other South-East Queensland locations may also be available upon request.

How long does an insurance replacement cost valuation take?

Timeframes depend on the size and complexity of the property. Most residential instructions are completed within a few business days following inspection, while larger commercial and strata properties may require additional time.

How much does an insurance replacement cost valuation cost?

Fees vary depending on the property's size, complexity and intended purpose. Please contact Woods Valuation Services for an obligation-free quotation tailored to your property.