Our Property Rebuild Valuation (PRV) Service is a valuation done on your property to determine the cost to completely rebuild (including the cost of materials and labour) in the event of property damage.  In other words, the amount of money required to reconstruct your property from the foundations up if your property was, for example, damaged or completely destroyed in a hurricane, fire, flood or earthquake. 

If your property is not insured for the correct Rebuild Cost, this can leave you with hefty out of pocket expenses. All property insurance policies carry an Average Clause, which in the event of a loss, can result in the insurer not paying full restoration costs if the property is not adequately insured.

Having an accurate Rebuild Cost is therefore vital to prevent you from over or under insuring your property. 

Don’t waste money by having incorrect insurance coverage. Make sure you are adequately and accurately insured. Use our Property Rebuild Valuation (PRV) Service for a fraction of the cost of a Market Value Valuation. 

Is the Rebuild Cost different from the Market Value of my property?

Yes. Market Value is an opinion of what a property would sell for in an open competitive market. The Rebuild Cost is the amount it would take to completely rebuild your home if it was destroyed. The Market Value is usually higher than the Rebuild Cost, as it takes into account factors such as the value of the land the property sits on and the desirability of the location. 

Is it possible for the Rebuild Cost to exceed the market value of the property?

Yes. If your home is made of non-standard materials (such as marble instead of brick), its Rebuild Cost may be higher than its Market Value. In this case, you must insure your home for the higher Rebuild Cost, not the lower sale price or market value, in order to avoid any insurance shortfalls. 

Does the Rebuild Cost include other fees that are a part of rebuilding a property?

Yes. The Rebuild Cost includes related charges such as professional fees for surveyors, architects and consulting engineers where needed, and the cost of removal of debris from the loss site. Be reminded that most property insurance policies carry a clause that limits these related fees to 10% of the total Sum Insured.

What factors could affect the rebuild cost?

  • The price of labour
  • The cost of materials used to build a house identical to yours
  • Type of property 
  • Style of property – semi-detached, terraced, detached and so on
  • Size of property – external floor area, the number of floors, bedrooms and bathrooms, and if there’s a garage and basement
  • Age of your property

Should I review the rebuild cost of my property each time I renew my insurance?

Not necessarily. If you have renovated your property, made structural changes, or built an extension, it is important that the rebuild cost be recalculated and adjusted in order to ensure that you are fully covered in the event of a loss. 

If inflation has resulted in an increase in the cost of building materials and labour over time, it would also be prudent to review the rebuild cost at the time of policy renewal.

Is a Property Rebuild valuation the only valuation report I need for Insurance purposes or will I require a Market Value valuation as well? 

For insurance purposes, a Property Rebuild valuation is all that would be required as it reflects the cost to fully restore the insured property in the event of a loss. This is different from a Market Value valuation which is usually used to obtain financing (i.e. mortgage) or to facilitate the sale of a property.

Does a Financial Institution require that property being used as collateral for a loan be insured at the full market resale value?

No. The market resale value of a property is usually more than the cost to restore the property in the event of a loss. Even if you insure for full Market Value, the Insurer will not pay out any more than the cost to rebuild the damaged property. 

What do I need to get a Property Rebuild Cost Valuation?

The first step is filling out our Request a Quotation form below which will run through some basic questions. Step 2 is having our professional property valuation specialist visit your property to carry out a detailed inspection. Step 3 will provide you with a report outlining the full rebuild cost.

Providing an accurate rebuild cost to your insurer remains your responsibility! 

The onus is on the property owner to provide the accurate rebuild value of their property.  That’s where we come in!

Property Rebuild Valuation cost can be broken down into two main factors:

  • The cost of materials
  • The associated cost of labour

Provisions for demolition and clean up, professional fees and other costs may also be included depending on the type of damage and the type of property.

Your property could be underinsured for its true rebuild cost! 

Spending a few thousand dollars for a rebuild valuation could save you millions! Your property is your biggest asset, ensure it is protected.

Definition of Insurance Terms: 

Sum Insured: This is the amount that you should be very careful to ensure that it will cover the cost to rebuild your property and is the basis of your Insurance contract.

Average Clause:  If at the time of a loss the property is insured for less than the full rebuild cost, then the Insured is responsible for the difference. In this event, the Insurer will only pay out a calculated portion of the rebuild cost and the balance will have to be found by the Insured.

Market Value: Market value is an opinion of what a property would sell for in an open competitive market.

Rebuild Cost:  This refers to the cost to completely rebuild your property if it was destroyed beyond repair. This includes the cost to replace all the structures on the property inclusive of fences, walls, driveways, swimming pool, storage facilities, etc.

We are here to assist you! Please start the process to conduct a Property Rebuild Valuation with us by completing our request form below. Once submitted, a member of our team will contact you to continue the process. Should you have any questions, please do not hesitate to contact us.