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Why you need an RCA for your new home

By: Kelly Bellerson
10/08/2023

An RCA is key to ensuring that you’re adequately protected against unforeseen events that could result in property damage or loss.

While homebuyers often focus on factors like location, aesthetics, and amenities, a reinstatement cost assessment (RCA) should be somewhere at the top of their priority list.


What is an RCA?

A reinstatement cost assessment, also known as a rebuilding cost assessment or a replacement cost assessment, is an evaluation that determines the estimated cost of rebuilding your home from scratch in case it’s damaged or destroyed by a covered event, such as a fire, natural disaster, or other unforeseen circumstances.

This assessment can only be undertaken by a Chartered Building Surveyor as it takes into account factors such as construction materials, labour costs, architectural features, and prevailing market conditions to calculate an accurate value for rebuilding your home to its current specifications.


Why you need one ASAP

If you’re looking to purchase a property or if you’re a first time buyer then having an accurate reinstatement cost assessment ensures that you have adequate insurance coverage (this is also vital for those who already own their own home).

If your home is underinsured and a catastrophic event occurs, you might not receive enough compensation from your insurance provider to fully rebuild your home.

On the other hand, overestimating the cost could lead to unnecessarily high insurance premiums. A precise assessment strikes the right balance, protecting your investment without breaking the bank.

Additionally, the cost of construction materials and labour can fluctuate due to various factors such as inflation, supply chain disruptions, and economic conditions.

Without a recent reinstatement cost assessment, you might find that your insurance coverage is insufficient to cover the actual cost of rebuilding.

Regular reassessments ensure that your coverage remains up-to-date with current construction costs.


Keeping your home safe

A home is often the largest financial investment people make in their lifetime. Protecting that investment is crucial.

A comprehensive reinstatement cost assessment helps safeguard your financial interests by ensuring that you can rebuild your home to the same standard as before, even after a significant loss.

In the unfortunate event that your home is damaged or destroyed, the financial burden of rebuilding can be immense.

Without a proper assessment, you might have to rely on personal savings or take out loans to cover the costs.

A reinstatement cost assessment mitigates this risk by providing an accurate estimation of the financial resources required for reconstruction.

Accurate insurance coverage resulting from a proper assessment not only benefits you during your ownership but can also enhance the resale value of your home.

Potential buyers are often reassured knowing that the property they’re purchasing has the right insurance coverage in place.

Moreover, having proper coverage provides peace of mind, knowing that you’re prepared for the unexpected.


How can we help?

We understand that investing in a new home goes beyond the initial excitement of finding the perfect property.

Protecting your investment and ensuring your financial security require thorough preparation, and a reinstatement cost assessment is a crucial part of that process.

Our RICS Chartered Building Surveyors can accurately assess the cost of rebuilding your home, allowing you to secure appropriate insurance coverage, adapt to changing construction costs, and ultimately enjoy the peace of mind that comes from knowing you’re fully prepared for any eventuality.

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