Insurance Valuation

It is not simply a case of being insured, but whether you may be under-insured and highly exposed or over insured with unnecessarily high premiums. We are here to help.

Our Dilapidation Process

Our dilapidation framework has been developed through thousands of hours of experience, our processes identify the right mix of skills to ensure success.

We have it covered. Managed by leading RICS dilapidation specialists we continually review our practises with our legal partners.

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Our Project Process

Our Project framework has been developed through collaboration with our partners and clients, applying a value centric process.

Unsure how to get the right result? We have it covered. Managed by experienced project managers we work hard to get you the result needed to meet budget time and quality.

Bespoke RCA solutions that will keep you covered

Todays world is unpredictable, increasingly complex and inter-connected. Being able to manage existing and emerging risks has never been more important. Vantage offer customised insurance valuation solutions and services for businesses of all shapes and sizes. We can help identify, evaluate and quantify the risks you face, to create a safer more robust business.

As RICS members and Chartered Surveyors, Vantage utilises consistent methods for inspecting buildings and creating Reinstatement Cost Assessments. We maintain best practice for assessing what the sums insured should be, by calculating the full reinstatement cost for insurance purposes on a day one basis.

In order to do this accurately we adhere to the latest guidance, the RICS Reinstatement Cost Assessment of Buildings 3rd Edition, February 2018, and perform an onsite inspection. We investigate the history of the property as is necessary to ensure we gather all the relevant facts. A report would then be produced with the correct sums insured.

In compiling assessments, the benefit of accurate plans cannot be underestimated. We can take relevant measurement to facilitate a valuation but up to date measured surveys and floor plans are best used. If you do not have a measured survey of your building, you should consider having one performed.

This should be reassessed on a regular basis with a major review and reassessment made every three years or earlier if significant changes have occurred. Failure to do so could result in underinsurance, which could result in you receiving a claims payment of less value than what your property is worth, and insurers can apply a term known as ‘average’.

An average clause will be on all property owners ’policies, but the good news is, you can ask for the average clause to be removed from your policy if you have had an approved RICS reinstatement cost assessment. Vantage can provide you with this.

There are different types of reinstatement including reinstatement plus inflation provisions, known as day one reinstatement, and reinstatement minus wear and tear. Of course, if there are no plans for a building to be repaired following damage or, the cost to do so would not be economically viable then a different type of indemnity could beconsidered, for example if the building has no tenant with no prospect offinding one or, is no longer in a desirable area.

In these circumstances, an indemnity cost with siteclearance, debris removal and ‘making safe’ costs only could be a betteroption. Your premiums can reflect the different options available to you, soit’s important to get it right based on your plans for the future.

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Let us help you insure the future success of your business

Our Insurance Valuation experts are well positioned to support you with a full turn key RCA service for all commercial and residential properties. No building is the same nor will the assessment be, we treat every role individually.

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“JT Ross value candid advice and that is what Vantage have provided us in the UK. Where problems existed, they found solutions and met our timescales plus budgets be it for projects or dilapidation roles. We recommend Vantage.”

Andrew Ross, UK Managing Partner

JT Ross

“Prologis promote collaborative working and exploring the best solutions with our customers. Applying this to dilapidations is not easy. Vantage are aligned with our values; consequently their approach has led to swift and pragmatic solutions for both us and our customers.”

Stuart Davies, Real Estate & Customer Experience Lead, VP

Prologis UK Limited

“Good help is hard to find and it’s a competitive marketplace so you have to react quickly. The team at Vantage showed the importance of listening first and have had a number of successful roles with our clients as a result.”

Craig Hudson, Equity Partner

Curson Sowerby Partners

“Vantage support Aegon property funds nationwide and have been reliable, applying solution focused strategies they have successfully settled a variety of dilapidation roles and at the same time maintained our aim of positive landlord/ tenant relationships.”

Jim Hartley, Head of UK Asset Management

Aegon, Europe

“Working with Vantage has always been a proactive process. I’ve found them to be very responsive and have the knowledge and staff to provide quality and accurate Insurance Reinstatement Valuations for our clients.“

Huw Thomas, Managing Director

Huw Thomas Commercial

"We have worked with Vantage for several years on dilapidation and project roles with success. The market is competitive, Vantage understand this and their innovative approach has seen us jointly achieve good results."

John Boyle, Chief Financial Officer

Ann Summers

"We enjoy working with the team at Vantage, together we have managed a number of complex roles to good effect. The quality of their work was excellent.”

Charles Sherrat-Davies, Director and Co-founder

Asset Management UK

Andrew Ross, UK Managing Partner

JT Ross

Stuart Davies, Real Estate & Customer Experience Lead, VP

Prologis UK Limited

Craig Hudson, Equity Partner

Curson Sowerby Partners

Jim Hartley, Head of UK Asset Management

Aegon, Europe

Huw Thomas, Managing Director

Huw Thomas Commercial

John Boyle, Chief Financial Officer

Ann Summers

"We enjoy working with the team at Vantage, together we have managed a number of complex roles to good effect. The quality of their work was excellent.”

Charles Sherrat-Davies, Director and Co-founder

Asset Management UK

FAQs

What is an RCA?

Reinstatement Cost Assessment (RCA) is the basis adopted by the Royal Institution of Chartered Surveyors (RICS) for undertaking an appraisal of property, plant, machinery and contents for insurance purposes. A Reinstatement Cost Assessment (RCA) is a professional assessment of the likely cost to reinstate a property in the event the building suffers complete or substantial destruction. The RCA will include demolition costs, an elemental analysis of the cost to rebuild, allowance for construction cost inflation over the insurance policy period and rebuilding programme, professional and statutory fees, and a loss of rent assessment, amongst other heads of cost. The assessment will be presented in a detailed report which clearly articulates the assumptions which have been made in forming the professional option of the reinstatement cost. RICS recommends that full RCAs are carried out every three years although updated RCAs should be undertaken whenever there are significant changes to the buildings, or investment/downsizing in the plant, machinery or contents

What is involved in a RCA?

The RCA should be prepared by a suitably qualified professional building consultant; such as those within the RCA Team at Vantage. It will be undertaken by a combination of site inspections, along with an elemental building cost assessment using available construction documentation and plans. - The RCA will require the following as a minimum: - Detailed briefing session with the client to ascertain the basis of the RCA - Agreement of all elements included within the relevant insurance policy - Review of all available construction documentation and plans - Site inspection and check measurement to verify the accuracy of the construction documentation provided - Detailed cost assessment of all items to be included within the RCA The preparation of a detailed RCA schedule and report will then be completed, describing the basis of assessment, assumptions made, and the professional building consultants opinion of the value to which the asset should be insured.

What are the risks of under insurance?

Insuring against damage is the first step. Vantage will ensure your reinstatement figures incorporate true costs for the whole site and in accordance with your building definitions on your insurance policy. Failure to do so could end in disaster when you come to settle a claim as you may have a huge loss on your account, which was not accounted for and therefore is not recoverable. If Insurers apply an average clause to the claim, then this will also affect the business interruption / loss of rent claim; which will result in unnecessary strain on the business.

The Average Insurance Clause

If you are 30% underinsured, then your claim could result in a 30% overall reduction in the settlement costs. This could be catastrophic to any property owner who would normally expect the total costs to be paid. The tenant would also suffer with the delays that could happen. Any building sum should include internal features, boundary walls, outbuildings, carparks, and landscaping. Generally, if you think it could be damaged, then you should include it if you have an insurable interest. You should also note professional fees and demolition costs should the worst happen; and make sure the VAT is added correctly. You should also record any exclusions (depending upon the lease, which will note responsibility for insurance risk) such as the tenant’s fixtures and fittings.

Will I need regular reassessments?

Reinstatement cost assessments should not be carried out only once. You should reassess the sum on a regular basis, with a yearly adjustment made to factor in inflation. Insurers can apply indexation to assist (an annual % increase to keep in line with inflationary increases), between the years, when another assessment may be due. As previously stated, a major review and reassessment should be carried out every three years minimum. In the event that you have not insured the full value of the property, insurers will apply an average clause as they have not been collecting high enough premiums to cover the real risk value calculated by their underwriters, and they require the insured to advise them of the true costs on their policy from day one. Having true costs from the outset helps you, the insurers and most importantly your tenants. If the tenants are paying the premium you will have a duty to make sure the costs are accurate and correct. We can help you establish what should be included in the buildings declared value on your policy, based upon the circumstance and intentions of the building, and any other important considerations i.e. listed status or conservation area.

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