Reinstatement Cost Assessments

One of the risks most owners are least likely to be aware of with a policy of home cover is that of being underinsured. The most common and costly incorrect assumption is most likely the actual valuation of the cost of reinstating the structure. In the absence of the most current building insurance valuation, you will be faced with huge deficit payments when you do have to make one.

This is where the Reinstatement Cost Assessments or RCAs come into action. An RCA will cover your home regarding the actual reinstatement cost of it from scratch in the event of a hundred per cent loss.

This has nothing to do with the market value of your property. This is the actual cost of bringing it up from the ground, from demolition and debris removal, through the architect's charge, structural charge and lawyer's fees.

Tom Hargreaves
Director

Paul Cartwright
Associate Director

Let's talk

What is a Reinstatement Cost Assessment?

A Reinstatement Cost Assessment determines the estimated cost of reconstructing your building as if it were destroyed. It considers factors such as demolition costs, site clearance, building materials, labour, compliance with modern building regulations, and all associated professional fees.

Importantly, it excludes the market value or land cost and instead focuses solely on the cost of reinstatement, a figure used for insurance purposes to ensure the sum insured is accurate and reflective of the real risk.

An astonishing 76 per cent of British homes are underinsured. This will leave the policy short of rebuild value in the event of loss or damage. The homeowner will therefore need to fund the shortfall, potentially costing hundreds of thousands of pounds.
At worst, the expense can even bring into question the profitability of the scheme or business. This is where a professional valuation becomes essential to avoid relying on outdated or inaccurate figures.
Overvaluing the reinstatement value is also something that is objectionable. It is overbuying more than you need to cover what you do not need. An RCA prevents overvaluing the reinstatement value and ensures fair valuation for you, your premiums are sensible, and your cover is exactly right for you.
Most policies will have a current reinstatement cost assessment (RCA) as one of the conditions of your policy, particularly for commercial properties. Without one, your policy may be null and void or otherwise put into jeopardy of being less-than-covering.
Occasionally, RCAs will see that you are fulfilling these obligations and thus evading arguments when you need it most. The average clause often applied by insurers can drastically reduce your claim settlement if you're found underinsured, making up-to-date RCAs crucial.

Let's talk

Why Are RCAs Essential?

Failing to undertake a RCA can lead to being under- or overinsured, both of which come with serious financial implications.

Who Should Get an RCA?

RCAs are relevant to a wide range of property stakeholders. If you own, lease, or manage any form of real estate, obtaining an RCA is an essential part of your risk management strategy. It is especially critical for:

Commercial landlords
Property management companies
Housing associations
Local authorities
Owners of listed or heritage buildings
Businesses with multiple sites
Charities and institutions managing property portfolios
Resident management companies

Whether your property is an office block, retail unit, warehouse, apartment complex or care home, an RCA ensures that you are not left financially vulnerable.

Let's talk

How Often Should an RCA Be Carried Out?

Industry standard is that RCAs should be revised every three years. Updating will be obligatory every year where there have been significant changes, extensions or redevelopment of the property.

Updating yearly will be prudent in times of inflation or uncertain construction costs for the purpose of having the reinstatement value up-to-date. Keeping the declared value accurate is vital to ensure policy effectiveness and to avoid claim reductions.

Let's talk

Why Choose Anderton Gables?

At Anderton Gables, we specialise in delivering detailed and dependable Reinstatement Cost Assessments. Our team of RICS-qualified surveyors combines deep technical expertise with the latest valuation software to deliver accurate, transparent and insurance-compliant assessments.

When you choose Anderton Gables, you benefit from:

A tailored approach for each property type and client
In-depth knowledge of current construction costs and industry standards
Clear, concise reporting and recommendations
Peace of mind that your insurance cover reflects the true reinstatement value

In addition to the assessment itself, we also highlight potential risks, maintenance issues or compliance concerns that may affect the reinstatement cost. This approach allows property owners to take proactive steps in safeguarding their assets. We work closely with respected firms like Cardinus Risk Management to ensure complete alignment with current insurance and risk standards.

Reinstatement Cost Assessment FAQS

An RCA includes the cost of demolishing the existing structure, clearing the site, rebuilding to modern regulations and standards, and paying professional fees such as architects, surveyors and engineers. It excludes land value and any market-driven elements. It also accounts for costs related to debris removal and other preparatory work before rebuilding.
While not a legal requirement in itself, many insurance policies require an up-to-date reinstatement cost to remain valid. Failing to carry out an RCA could result in a breach of policy conditions.
This depends on the complexity and size of the building. Most standard assessments can be completed within a few days of inspection, with a final report issued shortly afterwards. In some cases, an on-site assessment is required for full accuracy.
Yes. RCAs are suitable for residential, commercial, industrial and mixed-use properties. At Anderton Gables, we have experience with a diverse portfolio of buildings, including listed properties and those with complex layouts or construction methods.
If you have carried out any extensions, refurbishments or significant internal alterations, your previous RCA may no longer be valid. It is advisable to commission a new professional valuation to reflect the updated reinstatement cost.
Yes. We work with clients across the UK, offering consistent, high-quality RCA services regardless of location.