Across the UK, major insurers are tightening their requirements around Reinstatement Cost Assessments RCAs With rebuild costs rising sharply and supply chain uncertainty continuing into 2025, policies based on outdated figures are placing both insurers and property owners at financial risk.
For commercial landlords, asset managers and estate teams, this shift marks a significant change: RCAs can no longer be treated as a “tick box” exercise completed every few years. They are now a core part of risk management and insurance compliance.
Why Insurers Are Demanding More Frequent RCAs
Insurers are responding to several key pressures:
- Construction inflation: Building materials, labour and specialist services have all increased in cost, meaning many existing RCAs undervalue the true rebuild figure.
- Supply chain volatility: Delays and price jumps make historical cost assumptions unreliable.
- Rising claims: More frequently, insurers are discovering that insured values fall short — leaving disputes around underinsurance.
- Regulatory and compliance focus: Insurers are required to demonstrate robust risk assessment methodologies, which includes verifying that sums insured are accurate.
The result? Insurers are now requesting up-to-date RCAs more often, and in some cases, they are making renewal dependent on evidence of a recent assessment.
The Risks of an Outdated RCAs
An RCA that no longer reflects today’s rebuild cost can lead to serious consequences:
- Underinsurance: If the rebuild value is underestimated, insurers may only pay a proportion of the claim (known as the “average clause”).
- Delayed settlements: Outdated figures slow down the claims process, particularly when values need reassessing during a loss.
- Cashflow impact: A disputed or reduced payout can create immediate financial strain for owners and investors.
- Portfolio-wide exposure: Larger estates may unknowingly carry substantial cumulative risk across their assets.
With insurers placing tighter scrutiny on valuations, the risk of inadequate cover has never been greater.
How Often Should an RCA Be Completed?
While guidance varies, current industry best practice indicates:
- Every 3 years for a full RCA
- Annual desktop updates to adjust for inflation and market conditions
However, many insurers are now suggesting that high-risk or complex assets undergo more frequent review — particularly buildings with significant M&E components, specialist structures or heritage features.
What Commercial Property Owners Should Do Now
To stay aligned with insurer expectations and protect your assets, consider:
- Reviewing your current RCA dates and identifying assets that are overdue.
- Planning a portfolio-wide update to ensure consistency and remove gaps in cover.
- Scheduling annual desktop reviews to keep sums insured aligned with market conditions.
- Ensuring assessments are completed by a RICS-certified surveyor for credibility and compliance.
A proactive approach can not only prevent exposure during a claim but also support smoother insurer negotiations and renewals.
How HORDE Can Support
HORDE’s Commercial Building Surveying team delivers accurate, RICS-compliant RCAs for single assets and full portfolio reviews. Each assessment is designed to provide:
- Precise rebuild cost calculations
- Comprehensive reporting suitable for all major insurers
- Long-term cost planning and asset protection insights
If your RCA is due — or you’re unsure when it was last completed — we can advise on next steps and deliver a timely, reliable assessment.
Get in touch today to discuss an RCA for your property or portfolio.