Insurance Reinstatement & Replacement Reports for Owners
Corporations
WHETHER FOR A RESIDENTIAL OR COMMERCIAL PROPERTY, AN INSURANCE REINSTATEMENT AND REPLACEMENT REPORT IS REQUIRED BY LAW FOR ALL OWNERS CORPORATIONS (OCS) WITH 3 OR MORE OCCUPIABLE LOTS.
The report must cover all buildings that the OC is liable to insure and aims to determine what the replacement cost would be if there was a total loss to those buildings.
In turn, this ensures that the correct level of insurance is secured to return a building to its existing state in the event of a disaster.
CompliancyCo. is highly regarded in this area, with a team of highly qualified unlimited building practitioners and licenced estate agents, ensuring that your insurance reinstatement and replacement valuations are the most comprehensive in the industry.
What costs are considered in an Insurance Reinstatement and Replacement Report?
A CompliancyCo. report not only considers the estimated construction costs for total replacement of a building, but provisions for demolition, debris removal and clean up; professional fees involved in the design, management, and construction of the building; compliance with newly introduced local planning laws and building codes; and other unexpected costs that are often missed by property valuers not qualified as registered builders.
Reports take into account and estimate constraints of the building site, for example, if the property is on flat land or located in the CBD where additional costs are needed to cover things such as traffic management, parking fees, rent of footpath or road space from local municipalities and so forth.
All of these factors are then used to determine a realistic rebuild timeframe.
The time that lapses following a major disaster and the reinstatement of the building to a fully functional state is often underestimated and can dramatically affect the cost estimation.
CompliancyCo. always uses the Building Price Index (BPI) to calculate escalation of building material and labour costs, as it often outstrips the Consumer Price Index (CPI). The BPI has increased by almost twice the rate of CPI in the last 10 years alone.
VALUATIONS AND YOUR INSURANCE PREMIUM
The best investment an OC can make is to insure their asset for the correct amount. By certifying that your building is accurately valued for replacement, you are also ensuring that you are paying the appropriate insurance premium.
Research shows that 80 per cent of non prescribed OCs are under insured, with 10 per cent insured for the correct amount, 5 per cent insured for almost half and 5 per cent insured for more than the correct amount.
CompliancyCo. not only looks at the cost of rebuilding, but flow on affects, such as loss of rent or temporary accommodation for residents.
The team use up to date rental and comparable sales data to estimate these costs, which can sometimes be much higher than the automatic cover provided by insurers.
Furthermore, unlike many other companies, CompliancyCo.’s Insurance Reinstatement and Replacement Reports provide an insurable amount for the next five years. This takes the guess work and responsibility away from OCs and their managers, allowing them to monitor their insurer’s automatic annual increases until the next assessment is undertaken.
Why choose CompliancyCo.?
TRUSTED PROFESSIONALS
CompliancyCo. experts are fully registered unlimited building practitioners and licenced estate agents, ensuring that your Insurance Reinstatement and Replacement Reports are the most comprehensive in the industry.
DETAILED REPORTS
Our comprehensive reports are easy to read and understand, and are formatted to meet the criteria outlined in your insurance policy. As a part of the service, OCs receive photos of each property inspected for their records.
RELIABLE DATA
CompliancyCo. uses the most recent data available from the valuer general’s office and the Real Estate Institute of Victoria (REIV) to crosscheck all valuations. This information is only made available to licenced estate agents and registered sworn valuers.
MULTIPLE OWNER’S CORPORATIONS
CompliancyCo. can provide a separate Insurance Reinstatement and Replacement Report for each individual OC. These will also provide a summary showing the status of all OC’s which can be passed on to your current insurer or other insurers to obtain a more competitive insurance quote.
FOLLOW-UP + SUPPORT
In person or phone consultations to explain findings in detail and answer any questions or concerns.