At QBM, our Insurance Valuations ensure that your building is insured for the full amount it would take to replace the building and nothing less.
Don’t leave it until your making a claim to find out whether you’re adequately insured.
Today there is an even greater array of unexpected risks facing organizations, from fires and natural disasters to terrorism and other man made hazards. That’s why it’s imperative that all complexes are properly covered and the only real way to know this is through insurance valuations. Failure to do so can turn an unfortunate incident into the event that leaves the owners with out-of pocket expenses to meet.
Here’s how regular Insurance Valuations with QBM can benefit you.
Insurance valuations can:
• ensure adequate cover and reduce the likelihood of paying unnecessarily high premiums.
• are cost effective. Once a valuation program has been put in place, it can help ensure that you are managing your insurance costs and cover effectively.
• can ensure your compliance with Body Corporate and Community Management Regulation 2008 now that there are new regulations stating that Insurance Valuations must be carried out at least every 5 years
What is an Insurance Valuation?
Essentailly, it is a valuation of a building or complex for replacement purposes and specifically relates to the reconstruction of a building or complex due to the occurrence of an insurable event, for example a fire. Replacement value involves the reconstruction of a building in conformance with current regulations.
Does Insurance Valuations include the value of the land?
No, the purpose of the valuation is to replace the improvements on the Strata Scheme Land – it is presupposed that the land will be substantially intact after an insurable event.
Elements used in the Calculated Value of the Building Replacement
The calculated value of the building comprises of several elements:
• Present Building Costs
• Allowance for Cost Escalation during the lead time of planning, calling tenders, and fit out.
• Professional Fees
• Removal of Debris
• Cost Escalation in the likely time lapse between the anniversary date and the date of any happening
QBM will ensure your building replacement Insurance Valuation is accurate and update. Don’t trust anyone but a professional.
Right now, are you properly covered?
Today there is an even greater array of unexpected risks facing organizations, from fires and natural disasters to terrorism and other man-made hazards. That’s why it’s imperative that all complexes have insurance evaluations. Failure to do so can turn an unfortunate incident into the event that leaves the owners with out of pocket expenses to meet.
Beware of the traps
Too often, Insurance Valuations are based on market appraisals. Market appraisals provide a relatively accurate valuation of the purchase price of a given property on the open market, but usually following a catastrophic event, companies have to rebuild facilities, not simply purchase them. Therefore, a whole different set of assumptions and valuations must be used in determining the appropriate amount of insurance coverage. It’s a matter of replacement costs versus market value.
Another common mistake is to use a capitalization formula, basing the replacement value of a property on the previous year’s assumptions—and simply increasing the numbers. Unfortunately, these figures are often inadequate and inaccurate, leading to insufficient coverage or overpaid premiums.
Make sure your Insurance Valuation is accurate. Talk to QBM.
Here’s how regular insurance valuations with QBM can benefit you: They ensure adequate cover and reduce the likelihood of paying unnecessarily high premiums.
• They’re cost effective. Once a valuation program has been put in place, it can help ensure that you are managing your insurance costs and cover effectively.
