Why regular reinstatement valuations are crucial for property owners

Written by Graham Bancroft from Rushton Hickman Limited

For many property owners, insurance is seen as a safety net—there when you need it, and hopefully never needed.

However, one critical element that often gets overlooked is the accuracy of the reinstatement valuation.

Ensuring this valuation is up-to-date can be the difference between full recovery and significant out-of-pocket costs in the event of damage or loss.

What is a reinstatement valuation?

A reinstatement valuation is the estimated cost to rebuild your property from scratch, including materials, labour, demolition, and professional fees, in the event of a total loss.

This figure is used by insurers to determine the level of cover you need—not to be confused with market value, which includes land and demand-based pricing.

The risks of an outdated valuation

Many property owners make the mistake of relying on old valuations or rough estimates. But construction costs are not static.

They fluctuate due to:

• Inflation and material costs: Over the past few years, building materials and labour costs have risen significantly.

• Changes to building regulations: New legal requirements can increase the cost of compliance and reconstruction.

• Property alterations: Renovations or extensions can add significant value—and replacement cost—to your property.

If your property is underinsured, you may be subject to the 'average clause', where insurers only pay out a proportion of your claim.

For example, if your building is insured for 70 per cent of its actual reinstatement cost, your insurer may only cover 70 per cent of any claim, leaving you to cover the rest.

Peace of mind through regular valuations

Getting your reinstatement valuation checked every 3–5 years, or after any significant renovation, is considered best practice.

Commercial property owners, landlords, and even residential homeowners should treat it as a proactive risk management tool—not just a tick-box exercise for policy renewals.

The Benefits

• Avoid underinsurance penalties

• Ensure quick and full settlement of claims

• Keep insurance premiums aligned with true risk

• Demonstrate compliance and due diligence

At Rushton Hickman, we have the correct qualified chartered surveyors with substantial knowledge and experience to offer comprehensive reinstatement valuations tailored to your property. Whether you own a single residence or a large property portfolio, we’re here to ensure your assets are properly protected.

Contact our team today for a consultation and ensure you're not caught short when it matters most.

Call us on 01283 517747 or email [email protected]