Frequently asked questions (FAQ)

1. What is a Replacement Insurance Assessment?

A Replacement Insurance Assessment provides a professional estimate of the cost to rebuild or replace a property following a total or significant loss (e.g., fire, flood, structural failure). It ensures your insurance policy reflects the actual cost of reinstatement, not just market value or historical build costs.

These assessments are used to determine the sum insured for buildings across residential, commercial, industrial, and strata properties.

2. What types of properties require a Replacement Insurance Estimate?

Replacement cost estimates are required or strongly recommended for:

• Residential homes (standalone houses, duplexes, townhouses)

• Apartment buildings and strata complexes

• Commercial and retail buildings

• Industrial facilities and warehouses

• Offices and mixed-use developments

• Public, educational, and religious institutions

• Heritage and special-use buildings
  
  

Estimates are commonly requested by:

• Homeowners and investors

• Strata managers and body corporates

• Lenders and insurers

• Government or institutional property managers
  
  

3. What is a Reinstatement Cost Estimate?

A Reinstatement Cost Estimate is the most common basis for insurance. It estimates the cost to rebuild a property using modern materials and current building codes, to the same general size and function as before. It includes:

• Demolition and site clearance

• Construction to modern equivalent standard

• Professional fees (architects, engineers, project managers)

• Escalation allowance

• GST (if applicable)
  
  

It does not typically include replication of heritage elements unless specifically requested.

4. What is a Reproduction Cost Estimate?

A Reproduction Cost Estimate calculates the cost to rebuild a property exactly as it was, using the same design, materials, and construction techniques. This is often required for:

• Heritage-listed buildings

• Architecturally significant structures

• Churches, theatres, or bespoke facilities
  
  

This type of estimate is more complex and costly and is usually required when policies demand "like-for-like" reinstatement.

5. What is Indemnity Value?

Indemnity Value reflects the depreciated value of the building at the time of loss. It accounts for the age, condition, and remaining useful life of the property.
While less commonly used for full insurance, it is relevant in:

• Claims settlements

• Partial cover policies

• Older buildings with limited remaining life expectancy

It does not represent the full cost to rebuild.

6. What’s included in a Replacement Insurance Estimate?

A comprehensive assessment will include:

• Demolition and removal of debris

  • Safe dismantling of damaged structures

  • Asbestos or hazardous material handling (if applicable)

  • Site clearance and preparation for reconstruction
    
    

• Construction and reinstatement costs

  • Labour, materials, and services to rebuild the structure

  • Allowance for current building codes and compliance upgrades
    
    

• Professional fees

  • Architectural design

  • Structural and services engineering

  • Quantity surveying and certification

  • Project management
    
    

• Cost escalation allowance

  • Inflation and price rises during expected rebuild time (typically 12–24 months)
    
    

• Contingency

  • To account for unknown or variable site conditions
    
    

• GST, if applicable (depending on ownership structure and insurance policy terms)
  
  

7. What’s not included?

• Contents or personal belongings

• Land value

• Loss of income or business interruption

• Legal or dispute resolution costs

• Heritage reproduction or non-compliant design elements

• Cost increases beyond the assumed rebuild period (unless specified)
  
  

8. How often should I update my insurance estimate?

We recommend updating your estimate every 1–3 years, or immediately if:

• The property has been extended, renovated, or altered

• Construction costs in your area have increased significantly

• Your insurance provider requests a current report
  
  

Outdated or index-based estimates can result in underinsurance or insufficient coverage during a claim.

9. How is the demolition and removal of debris calculated?

This includes:

• Full structural demolition

• Manual dismantling of damaged or unsafe areas

• Removal and transport of rubble and materials

• Identification and safe handling of asbestos or hazardous waste

• Site grading and preparation for reconstruction
  
  

These costs are highly variable depending on access, material types, and environmental risks and must be estimated specifically for each property.

10. Who is qualified to prepare an insurance replacement estimate?

Only appropriately qualified professionals should provide insurance cost assessments. These include:

• Certified valuers

• Quantity surveyors

• Construction cost professionals with insurance experience
  
  

11. Why can’t I use market value or purchase price for insurance?

Market value includes land, location, and future development potential—it doesn’t reflect what it would cost to rebuild the structure.
Insurance requires a replacement cost, which can be significantly different from market value. Relying on market price for your sum insured can result in major claim shortfalls.

12. How long does it take to receive an insurance assessment report?

Most reports are delivered within 5–7 business days of receiving the required information. Larger or more complex properties (e.g., multi-storey strata, industrial facilities) may take longer.

13. What documentation or information do I need to provide?

To prepare your report, we typically require:

• Property address and legal description

• Floor plans or site layout (if available)

• Construction materials and specifications

• Year of construction and any major renovations

• Site access
  
  

14. How do I request a Replacement Insurance Assessment?

Get started by submitting our online request form, or contact our team directly. We’ll review your property details, provide a fixed quote, and deliver a professional report tailored to your insurance requirements.

Get Peace of Mind with a Professional Insurance Assessment

Protect your assets and avoid underinsurance with a professionally prepared replacement cost estimate. We assess homes, commercial buildings, strata properties, and special-use facilities across all sectors.