As a Chartered Surveyor, I’ve worked with all kinds of properties – residential, commercial, heritage, and industrial. One thing that unites all responsible property ownership is this: ensuring the building is accurately insured. And central to this is the work carried out by insurance surveyors.
From catastrophic fires to storm damage and subsidence, the only certainty in property ownership is uncertainty. That’s why a properly calculated reinstatement valuation – determined by qualified insurance surveyors – isn’t just helpful; it’s essential.
What Do Insurance Surveyors Actually Do?
An insurance surveyor assesses the reinstatement cost of a property. This is the full amount it would take to completely rebuild the building from scratch in the event of total destruction – not the market value, but the cost to replace materials, labour, demolition, site clearance, and fees.
These valuations are critical when setting the sum insured on your building insurance policy. Over the years, I’ve seen far too many clients only realise their policy was inadequate when it came time to make a claim – by which point, it’s often too late.
Reinstatement Valuation vs Market Value
It’s important to distinguish between the reinstatement valuation and the market value of a property:
- Market value is influenced by location, demand, nearby schools, and local amenities.
- Reinstatement value is based on how much it would cost to reconstruct the property with similar materials and standards, including professional and statutory fees.
For example, a countryside cottage might be worth £250,000 on the open market, but if it requires specialist stonework and bespoke timber framing, the reinstatement cost could exceed £400,000.
If your building is insured for market value instead of the true property reinstatement cost, you’re likely to be underinsured.
The Real Risk of Underinsurance
Underinsurance remains one of the most common pitfalls in UK property insurance. It can lead to dramatic financial consequences. Most insurers include an Average Clause in their policy terms. This means if your property is insured for less than its true reinstatement cost, any claim you make could be reduced in proportion to the shortfall.
Example:
If your property is worth £500,000 to rebuild but is only insured for £375,000 (75%), any claim – even a partial one – may be settled at just 75% of the loss. That can leave you footing thousands of pounds unexpectedly.
As a surveyor, I can’t stress enough the value of commissioning a building insurance survey that gives you a precise reinstatement figure to inform your policy.
Who Should Consider a Reinstatement Valuation?
Virtually all property owners should consider an updated valuation, but it’s particularly important for:
- Homeowners with older or listed buildings
- Landlords and property investors managing multiple units
- Commercial property owners with bespoke or complex buildings
- Facilities and estate managers of schools, hospitals or retail centres
- Trusts or housing associations responsible for multi-dwelling units
If any of these apply, then a property insurance valuation is not just a good idea – it’s vital for your risk management strategy.
When to Get a Reinstatement Valuation From Insurance Surveyors
While insurers may suggest a figure or accept a declared amount at inception, this doesn’t guarantee accuracy. A full reinstatement cost assessment should be carried out:
- When a new policy is taken out
- At least every 3 to 5 years thereafter
- After any significant renovation, extension, or upgrade
- Following any substantial change in construction regulations or building costs
Construction inflation, material shortages, or regulatory changes can significantly impact rebuilding costs in just a few years.
What’s Included in a Building Insurance Survey?
When instructed to carry out a reinstatement valuation, a qualified insurance surveyor will:
- Conduct a full on-site inspection – including measurements, structure, finishes, and features
- Review architectural drawings (if available) and assess building use
- Identify listed status or special materials (e.g., slate roofs, stonework, timber cladding)
- Calculate costs using industry tools like BCIS (Building Cost Information Service)
- Factor in demolition, debris removal, fees and VAT
- Deliver a professional, insurer-ready report
It’s important to choose a RICS-accredited surveyor for this task – your insurer will be more likely to accept the valuation without challenge.
Common Misconceptions About Insurance Valuations
There are several myths I frequently encounter:
- “I’ve never had to claim before, so I don’t need a new valuation.”
Insurance is for the unexpected. Regular reviews are essential. - “My estate agent gave me a value recently.”
Market value ≠ reinstatement cost. Agents don’t calculate rebuild figures. - “My insurer will tell me if it’s wrong.”
In most cases, the onus is on the policyholder to declare an accurate sum insured.
Key Benefits of Using a Professional Insurance Surveyor
- Avoid underinsurance and costly shortfalls
- Prevent unnecessary premium overpayment
- Streamline future claims by having accurate documentation
- Receive a formal, recognised valuation accepted by most UK insurers
- Gain peace of mind that your asset is properly protected
As a Chartered Surveyor, my role is to ensure that nothing is left to chance. Having the correct reinstatement value is just as important as having insurance in the first place.
Final Thoughts from the Field
If you haven’t reviewed your reinstatement valuation in the last few years, now is the time. Building costs are rising fast, and regulations continue to evolve. Engaging an insurance surveyor now can save you thousands – and much heartache – later.
Don’t let a poorly set sum insured be the weak link in your financial planning. An up-to-date building insurance survey is a simple, professional safeguard against some of the most significant risks you face as a property owner.
To learn more about professional insurance surveys and accurate reinstatement valuations, visit: www.ilauk.co.uk
