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RCA vs storm damage: commercial property

By: Kelly Bellerson

Has your building felt the effects of Storm Henk? If so, a reinstatement cost assessment can help you going forward. Here’s how…

When we think about devastating storms, we picture countries that constantly battle against intense humidity and wet weather conditions. However, the UK’s weather is shifting, thanks to climate change, which means we are starting to experience more extreme weather ourselves.

Accurate valuation for insurance purposes

One of the best things about having an Reinstatement Cost Assessment (RCA) is its ability to provide commercial landlords with an accurate valuation of the property.

As you may know, in the aftermath of a storm, insurance claims are a must! By having a precise RCA, this will ensure that the insurance coverage accurately reflects the value of the property.

This accuracy can also help speed up the claims process and enable landlords to receive the necessary funds for repairs and rebuilding sooner, so you can get back to doing what you do best.

Customised insurance coverage

Every commercial property is unique, and a generic insurance policy just won’t cover the specific risks associated with a particular building.

A reinstatement cost assessment takes into account the specific features and characteristics of the property so that the insurance policy can be tailored to the building.

Being able to customise your insurance policy guarantees that your property it adequately covered from all potential risks related to storm damage, ultimately reducing the financial burden on the building owner in the event of a disaster.

Efficient restoration planning

Storm damage is becoming more of worry for commercial property owners, and the last thing any building owner wants is storm damage causing disruption to their business; as damage can be extensive and varied.

This is where an RCA can come in handy as it provides a detailed breakdown of the building’s structure and contents.

Information from the RCA can prove invaluable during the restoration planning process, guiding building owners on where to allocate resources and prioritise repairs, helping to make informed decisions that maximise the efficiency of the restoration process.

Prevents underinsurance

Underinsurance is a common pitfall for commercial property owners, where the insured amount falls short of the actual reinstatement cost.

In the case of storm damage, underinsurance can be financially devastating, hindering the ability to fully recover and rebuild.

An RCA acts as a safeguard against underinsurance risks, ensuring that the property is adequately covered, and that the insurance pay out aligns with the true cost of reinstatement.

Peace of mind

Overall, knowing that a comprehensive RCA is in place provides commercial building owners with peace of mind, meaning that they can carry on with everyday life without worrying about the condition of the building no matter the weather.

Moreover, it allows owners to focus on implementing effective risk management strategies, confident that they have a reliable foundation for insurance claims and recovery efforts in a worst-case scenario.

What is a Reinstatement Cost Assessment?

If you’ve got this far and you’re still wondering what a Reinstatement Cost Assessment is, it’s: a comprehensive evaluation that can be conducted by a chartered building surveyor to determine the estimated cost needed to rebuild or reinstate a property to its original condition in the event of damage or destruction.

This assessment is particularly crucial for insurance purposes, as it helps property owners, insurers, and other stakeholders establish an appropriate level of coverage to ensure adequate financial protection.

The process involves evaluating various factors, including construction materials, labour costs, architectural features, and prevailing market conditions.

By considering these elements, a reinstatement cost assessment aims to provide an accurate and up-to-date estimate, reflecting the true replacement value of the property.

This assessment is essential for property owners to avoid underinsurance and ensure they have sufficient coverage to recover from potential losses due to unforeseen events such as fires, extreme weather conditions, or other catastrophic incidents.

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