Insurance Valuations

Bayleys Valuations

Insurance valuations

An insurance valuation provides independently assessed cost and value estimates which insurance companies and property owners can rely upon.

Buildings should be valued for insurance purposes at regular intervals to ensure there is adequate cover in the event of a potential disaster. Insurance Valuations guarantee the level of cover in advance of any potential disaster occurring.

Regular insurance valuation updates enable insurers to quantify their claim exposure and to be in a position to offer lower premiums. We normally recommend that valuation updates are undertaken annually to account for increases in construction costs.

In completing Insurance Valuations valuers calculate the Reinstatement Value (replacement cost) of the existing building. This is based on current construction costs and compares the subject property to other buildings of a similar size and quality. Allowances for building consents, professional fees and contingencies are taken into account.

Separate calculations are then undertaken to derive the Indemnity Value (the depreciated replacement cost - allowing for age, condition, obsolescence, physical deterioration, and residual life expectancy). Inflationary provisions are then applied to both the Reinstatement and Indemnity values, and the cost of Demolition is assessed.

The Insurance Valuation process provides independently assessed cost and value estimates which insurance companies and property owners can rely on. It offers certainty in event of damage from disasters; such as fire, explosion, excessive wind or rain, flooding, earthquake or tsunami.

If we can be of assistance with any insurance valuation requirements, please get in touch with us directly or by enquiry below.

Enquire about a valuation