My Account
Commercial property risks placed with leading UK insurers
REINSTATEMENT COST ASSESSMENTS (RCA) FOR OFFICE BUILDINGS
Ensure Your Building Is Insured for the Correct Amount
Reinstatement Cost Assessments (also called “insurance rebuild valuations”) determine the true cost to completely rebuild your building after a major loss - including demolition, debris removal, professional fees, and modern building regulations.
Insurers require accurate sums insured. If your building is underinsured, claim payouts may be reduced by the **average clause**, leaving property owners and landlords exposed to significant financial loss.
What’s Included in a Reinstatement Cost Assessment?
A detailed and professional valuation of your building’s full rebuild cost.
Building Measurement & Analysis
- Full internal & external measurements.
- Assessment of construction type and complexity.
- Floor-by-floor breakdown for multi-storey buildings.
- Survey of roof, cladding, lifts, HVAC and structural elements.
- Assessment of fire safety & building regulations compliance.
- Analysis of access restrictions affecting rebuild costs.
Rebuild Cost Calculations
- Demolition & debris removal costs.
- Professional fees (architects, engineers, planning).
- Structural reinstatement costs.
- Internal fit-out & mechanical services.
- Compliance with modern building regulations.
- Evaluation of inflation & building material increases.
Who Needs a Reinstatement Cost Assessment?
Any commercial building owner should ensure their property is insured for its correct rebuild value. RCAs are essential for:
Property Types
- Office blocks & business centres.
- Multi-storey commercial buildings.
- Serviced office buildings & co-working spaces.
- Mixed-use commercial premises.
- Older or heritage office buildings.
- Buildings with specialist construction.
Ideal For
- Commercial landlords & freeholders.
- Property investors & pension fund property owners.
- Managing agents and block managers.
- Corporate property owners.
- Lenders requiring updated rebuild valuations.
- Landlords renewing insurance after major refurbishments.
Why Underinsurance Is a Major Risk
The majority of UK commercial buildings are underinsured - sometimes by 20–60%.
Financial Risks
- Reduced claim payouts due to the average clause.
- Unexpected repair costs falling on the landlord.
- Inadequate cover for demolition or debris removal.
- Higher liability for tenant disruption or loss of rent.
- Compliance issues with lenders or investors.
- Severe financial exposure after total-loss events.
Practical Risks
- Buildings rebuilt to outdated standards.
- Insufficient reinstatement for modern regulations.
- Incorrect material cost assumptions.
- Failure to consider specialist construction features.
- Inadequate allowance for access restrictions.
- Refurbishment or extension work left unvalued.
FREQUENTLY ASKED QUESTIONS
+-
How often should a Reinstatement Cost Assessment be carried out?
Industry guidance recommends full RCAs every 3–5 years, or sooner after major refurbishments.
+-
Does my insurer require an RCA?
Many insurers now expect updated rebuild valuations, especially for large commercial buildings.
+-
What happens if I am underinsured?
Insurers may apply the average clause, reducing your claim payout in proportion to the underinsurance level.
+-
Does an RCA include asbestos surveys?
No - although asbestos presence can impact rebuild costs, RCAs do not replace statutory asbestos inspections.
+-
Can an RCA reduce my insurance premium?
Sometimes - if your building is overinsured, an RCA may prevent you from paying excessive premiums.
+-
Is an RCA different from a market valuation?
Yes - RCAs are based on rebuild cost, not property market value. They are completely separate assessments.
+-
How long does an RCA take?
Most assessments take 1–2 hours onsite, with reports issued within a few working days.