What Is An Insurance Valuation?

A report prepared by a licensed insurance valuer who is qualified to calculate the replacement value of the building and common property. The valuer carries out a physical inspection of the property and provides a report and recommendation, which takes into account the full cost to rebuild the property in the event of a total loss. This will include demolition of existing building/s, removal of debris and rebuilding a new development including all fixtures and fittings.

A valuation report is an important investment for the Body Corporate to maintain insurance at the correct level, and can sometimes even save owners a lot of money where they have been over-insured.

Why Is It Needed?

Legislation states that the Body Corporate needs to have insurance in place to cover the full replacement value of the common property and Body Corporate assets. In order to determine the correct replacement value of the property, a licenced valuer should be engaged to carry out the appropriate calculations.

Should We Have One Completed?

A valuation is required every 5 years, however it is best practice to obtain a valuation every 3 years to maintain a good check on replacement and rebuilding costs.

Who Can Prepare It?

Only a licensed valuer should be engaged, and we would recommend one who is proficient in strata titles. It is important to note that a market appraisal, prepared by a real estate agent, is not the same as an insurance valuation.