Having the appropriate value of insurance cover is essential when protecting your commercial property, as is keeping it up to date. But how can you be sure you’re covered for the full cost of rebuilding in the event of a disaster? This is where a Quantity Surveyors’ reinstatement cost assessment comes in.
What is an Insurance Estimate?
A Reinstatement Cost Assessment (RCA) is a insurance estimate which includes the estimated cost to rebuild a property in the event of ‘total loss’. This estimate includes construction works, professional fees, authority fees, and inflationary provisions. The report is disclosed to insurance providers to ensure adequate insurance cover is provided. The insurance companies in turn adjust their premiums accordingly.
We also provide an Indemnity Estimate or Depreciated Replacement Cost Estimate, calculated using the straight-line method. This is used to calculate the appropriate value of Fire Services Levies for your insurance premiums to fund local fire departments. Having an accurate and up to date reinstatement costs ensures you’re not at risk of financial shortfalls in the event of ‘total loss’. Without one, you risk being underinsured and could face significant cost overruns should the worst happen. Equally, overvaluing the cost of rebuilding will result in higher premiums.
We prepare Reinstatement Cost Estimates for insurance purposes, which insurance providers use to offer you coverage in the event of a total loss. This estimate includes construction works, professional fees, authority fees, and Inflationary Provisions.
How Much Does a Depreciated Replacement Assessment Cost?
The average cost in preparing the RCA depends on the location, size, and complexity of the property. Our fees for a detailed and extensive Reinstatement Cost Assessment typically range from $900 (excl. GST) to $1,500 (excl. GST). Contact us for a complementary fee proposal at info@elementalqs.co.nz
Elemental Quantity Surveyors is a trusted independent consultancy in New Zealand, offering expert construction cost advice in Auckland, Wellington, Christchurch, and Queenstown. Managing Director, Daniel Small has extensive experience across various construction sectors. Starting his career in Auckland in 2006, Daniel has worked as a residential quantity surveyor and a construction cost consultant. He founded Elemental Quantity Surveyors in 2024 and remains dedicated to supporting property developers, project managers, financiers, and investors across New Zealand.
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