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Insurance Valuation

insurance valuation services melbourne

Insurance 1

Insurance valuations unlike current market valuations determine the insurance value specifically of your property in the event of loss or damage. In simple terms, value maybe determined under the basis of “Replacement Value” being “as new” or “Reinstatement Value“ being the cost to replace, repair, or rebuild the asset to a condition and extent substantially equal to the improvements existing prior to the damage occurring. As building costs increase, it is important to keep your insurance value up to date. Accordingly, FVG Property as Melbourne’s leading property insurance valuation practice, are up to date in relation to construction costs, basis of value and trends in building cost escalation.

In simple terms, FVG Property allows our clients to protect their assets inclusive of those being owner occupied or held as investments with accurate building insurance reports and cost valuations. What allows FVG Property to be a market leader in this area of expertise as distinct from its competitors, is the many years of experience in the industry being in excess of 20 years, professionalism and cost effectiveness of its insurance reports, coupled with its duty of care in arriving at values. Only through a thorough process inclusive of site inspection, analysis of supplementary documentation, industry cost rates can a determination of value be concluded coupled with years of experience.

INSURE YOUR ASSETS FOR THE CORRECT SUM

INSURE YOUR ASSETS FOR THE CORRECT SUM

By obtaining a report from FVG Property, you are simply allowing your assets to be insured for the correct sum. For the individual home owner it is not simply a case of utilising the purchase price of the property, or a value reflective of the last sale in your street, it is the cost of rebuilding the improvements as defined under the definition of value as specified within the allocated insurance policy.

For the business owner and occupier of the property, under insurance of a property will trigger a loss in the event of a disaster. Unfortunately, unless professional assistance is sought, most businesses’ or property owners have only 50-75% of the correct insurance value insured.

the common methods for unqualified parties insuring their assets are:

  • Adding a nominal percentage to last years figure
  • Adopting a past book value
  • Purchase price
  • Asking your accountant, banker or real estate agent
  • Using a current market value,less and component

Accordingly, we are deemed as a specialist as to current market value, rental determination and associated advisory within this specific and specialist area of real estate.

INSURANCE VALUATION PROCEDURE

Inspection

Physically internally inspect all improvements availing noting mode of construction, fittings and finishes as well as any special features

Physically measure all improvements in accordance with Property Council Of Australia Method of Measurement

Internal and external photographs of all improvements

Insurance Replacement Value Calculation

Insurance 3
  • Reference is made to leading cost publications inclusive of Rawlinsons Australian Construction Handbook and Cordells Building Cost Guide
  • Individual Building Cost Allowances are calculated for each building availing
  • Allowance for Design and Documentation
  • Allowance for Calling Tenders and Appraisals
  • Allowance for Construction Period and Fitout
  • Contingency Allowance
  • Professional Fees Allowance
  • Statutory Fees Allowance
  • Demolition and Debris Removal Allowance
  • Cost Escalation Allowance
  • Value assessment inclusive and exclusive of GST

Report

Insurance 4
  • 1. Preface
    • 1.1Purpose of Replacement Value
    • 1.2Location
    • 1.3Methodology
  • 2.Replacement Estimates
    • 2.1 Replacement with new value
    • 2.2 Demolition and Removal of Building Debris
  • 3. Estimate Limited of Liability
    • 3.1 Estimated Lead Time to Commencement of Rebuilding adn Estimated Rebuilding Period
  • 4.Description Of Improvements
  • 5.Protection & Hazards
    • 5.1 Protection Class
    • 5.2Fire Detection
    • 5.3Burglar Detection
    • 5.4Physical Hazards
    • 5.5Comments to Underwriter
    • 5.6Physical Hazards/Natural Exposures
    • 5.7Plumbing & Electrical Updates
    • 5.8Physical Conditions of Building/Site Description
    • 5.9Fire Departments
  • 6.Recommendation
  • 7.Valuation Assessment