Insurance Valuations
Herron Todd White provides Insurance Valuations expertise across Australia.
Insurance Valuations
Herron Todd White provides independent Insurance Valuations backed by local expertise and national consistency.
Frequently Asked Questions
- What is an insurance valuation, and why do I need one?
An insurance valuation estimates what it would cost to rebuild your property after a total loss, including demolition, professional fees, and cost increases. It helps you set a sum insured that would actually cover a rebuild, so you're not relying on an estimate or an outdated figure.
- What happens if my property is underinsured?
If your sum insured is less than the cost of rebuilding, you'll have to cover the difference yourself. Some policies, particularly commercial policies, also reduce claim payments in proportion to the underinsurance, even for partial losses. An up-to-date insurance valuation is the most reliable way to avoid this.
- Why is the insurance value different from the market value?
Market value is what the property would sell for, including the land, and it depends on buyer demand. Insurance value is the cost of rebuilding. It excludes the land, which isn't destroyed in a loss, and includes demolition, materials, labour, professional fees, and cost escalation. The two figures can differ significantly, in either direction.
- How often should a strata building get an insurance valuation?
Most states require owners corporations or bodies corporate to obtain an updated insurance valuation at regular intervals, commonly at least every five years. Because construction costs can change quickly, many schemes review their valuation more often.
- Does the valuation include contents?
No. Our building insurance valuations cover the building structure and fixed fit-outs. Personal contents, loose furniture, and business stock aren't included. We can value plant and equipment separately if you need it.
- What if building codes have changed since the property was built?
Our estimates assume the building will be rebuilt to meet current National Construction Code standards. This can increase the cost compared with the original build, so it's included in your reinstatement cost.