Insurance Replacement Cost Estimates

Replacement Cost Estimates

Industry research has shown that a majority of properties in Australia are under-insured. There are a number of reasons for this including increased building and materials costs as well as labour and supply shortages. Development costs can often be overlooked when calculating a replacement cost and these can include professional fees, demolition and cost escalation over the period from the claim to the completion of construction.

To ensure your building is fully covered in the unfortunate event of an insurance claim, Quanto are able to provide a Replacement Cost Estimate report that will detail the costs involved to rebuild the property including demolition, design, authority and escalation costs.

If you have any questions regarding Replacement Cost Estimates, please contact Quanto today.

Frequently Asked Questions

Why use a Quantity Surveyor for a Replacement Cost Estimate?

Quantity Surveyors are the experts in estimating construction costs. We have the relevant experience necessary to determine an accurate replacement cost of a building. This includes all development costs and escalations that could arise during construction so that you can be assured that your asset is fully covered by insurance.

What does a Replacement Cost Estimate include?

A Quanto Replacement Cost Estimate will include:

  • A description of the building structure, materials, services and finishings
  • Works external to the building
  • Building areas
  • Total building cost
  • Photographs

If there is anything unique or unusual about the building, this will also be noted e.g. car stacker, solar panels, swimming pool

Who needs a Replacement Cost Estimate?

If you think that your building may be under-insured, then you need a Replacement Cost Estimate. Certainly commercial, industrial or retail properties that are built for purpose may need an expert to determine a replacement cost. Similarly, architecturally designed houses may require a Replacement Cost Estimate.

In accordance with the Strata Schemes Management Act, all Strata Schemes must have their building/s insured. And the best way to have the building adequately insured is to have a Replacement Cost Estimate prepared by an experienced Quantity Surveyor.

Contact Quanto if you are unsure about the current level of cover of your insurance.