Building Insurance Valuations Specialising in Strata Title Property
We value Residential, Commercial, Industrial and Retail Strata Title Properties for Insurance Purposes.
We provide Certificates of Value for the replacement cost of the buildings of the Strata Plan in order to comply with s85 of the Strata Schemes Management Act 1996 and Part 3 of the Regulation 2010.
The Strata Schemes Management Act 1996 - Section 85 requires valuations to be obtained for the purpose of insurance, at least once every five years, by a registered valuer. The cost of the valuation is payable by the Owners Corporation or other persons with a vested estate in part of the building.
Although the Act states a valuation be obtained every five years, the majority of our clients engage a valuation after three years as a preferred risk management strategy. Typically price movements in the building industry can vary dramatically from the headline inflation rate and under insurance is a real risk.
If you are under-insured the insurance company may use the "co-insurance" or averaging clause of the Policy and may only pay a portion of the true replacement cost of the improvements. The short fall may have to be paid by the owner or the Strata Manager if found to be negligent by not getting an updated and current Building Insurance Valuation.
It is currently a statutory requirement for all Strata Schemes to obtain a valuation for insurance purposes by a Registered Valuer once every 5 years. Good strata managers recommend that a Building Insurance Valuation be obtained at least every 3 years and is some cases each year. This protects against potential loss from under-insurance. We consider that the best solution is to have an annual inspection by a Registered Valuer to ensure that your sum insured keeps up to date with the market changes in building costs.
When we receive your instructions we will,Inspect the subject property and assess the materials and the amount of materials required for complete replacement of the building and its surrounds.take photos of the improvements and surrounding area.
estimate the replacement cost the improvements and materials, and apply the additional items specified in the Strata Schemes Management Act 1996.
provide Certificates of Value, (usually one bound copy, one unbound for photocopying and a pdf file for emailing).
ensure that the Building Insurance Valuation will be carried out by a Registered Valuer without limitation.
Our Building Insurance Valuations comply with the Strata Schemes Management Act. Our report details the individual components that correctly make up a valid Building Insurance Valuation such as demolition costs, council and other professional fees, escalation in constructions costs, and gst, amongst other things.
We also take into account different cost factors such as location (in a more affluent area or less accessible area), different types of construction material, different finishes and the like.