Who this is for
- Home owners reviewing their building sum insured
- Owners corporations and investors with rental property
- Owners of commercial and industrial buildings
- Owners of older, heritage or unusual buildings
What you get
- Inspection of the buildings and improvements
- An estimate of the cost to replace the buildings
- A description of construction, size and condition
- A written report signed by a Certified Practising Valuer
- Residential, commercial and industrial buildings covered
Why a replacement valuation matters
If your home or building were badly damaged, your insurance would need to cover the cost of rebuilding it. If the sum insured is too low, you could be left paying the difference. An insurance replacement valuation gives you an independent estimate of what it would cost to replace the buildings, so you can set your cover with more confidence.
This is different from a market valuation. Market value includes the land and reflects what a buyer would pay. Replacement value is about the buildings and what it would take to rebuild them.
When to consider one
You might consider an insurance replacement valuation if:
- you have renovated, extended or added a pool, garage or outbuildings
- your building is older, heritage-listed or built with unusual materials
- the site is sloping, hard to access or would be difficult to build on
- building costs have risen since you last reviewed your cover
- you own a commercial or industrial building with specialised improvements
- your insurer or broker has suggested an independent estimate
Rebuilding older and unusual buildings can be more complex than a standard home. Tom has valued historic buildings of the University of Melbourne, beach boxes, ski lodges and recycling and waste depots, so non-standard buildings are familiar territory.
Which valuation type suits
An insurance replacement valuation needs a proper look at the buildings, so it is done as a full inspection valuation. Desktop and kerbside valuations are not the right fit, because the valuer needs to see the construction, finishes and condition.
- Residential full inspection valuations start from $500 + GST.
- Commercial and industrial valuations start from $975 + GST, with a 7-day turnaround.
The guide to desktop, kerbside and full inspection valuations explains the differences between the types. Current rates are on the pricing page.
What happens after you enquire
You speak directly with Tom Nagy, the valuer who will inspect the property and write the report. He will ask about:
- the property address and type of building
- any recent renovations, extensions or outbuildings
- whether you also need a market value for another purpose
Once the scope is agreed, the inspection is booked. You then receive a written report with the estimated replacement cost and a description of the buildings. You can take this to your insurer or broker when setting or reviewing your sum insured.
This page is general information only. What your policy covers, and how the sum insured should be set, is a matter for you and your insurer or broker.
Why use a Certified Practising Valuer
A replacement estimate is only as good as the understanding of the building behind it. Tom Nagy has more than 30 years in property and valuation and holds current CPV registration with the Australian Property Institute. As a sole practitioner, he inspects every property himself, and you can talk to him directly about the report.
Call 0407 835 388 to talk about your building, or request a quote.
Common questions
Is the replacement value the same as the market value?
No. Market value is what the property would sell for, including the land. Replacement value for insurance is about what it would cost to rebuild the buildings. The two can be very different. A modest house on valuable land may cost far less to rebuild than it would sell for, while an older or unusual building may cost more.
Can I just use my insurer's online calculator?
Online calculators are a useful starting point, but they rely on general assumptions and the information you enter. They may not reflect unusual construction, heritage features, sloping sites or recent renovations. An inspection by a qualified valuer takes the actual building into account. Whether a calculator is enough for you is your decision, together with your insurer or broker.
How often should I review my sum insured?
There is no single rule. Many owners review it when they renovate or extend, after a period of rising building costs, or when their policy comes up for renewal. Your insurer or broker can help you decide how often a review makes sense for your building and policy.
Does the valuation tell me what my policy covers?
No. The report gives an estimate of replacement cost for the buildings. It does not interpret your policy. What your policy includes, such as demolition, debris removal, professional fees or contents, depends on its wording. Check this with your insurer or broker so the sum insured matches what the policy is meant to cover.
Can you prepare replacement valuations for commercial buildings?
Yes. Building replacement insurance valuations are available for commercial and industrial property as well as homes. Commercial and industrial reports start from $975 + GST with a 7-day turnaround. Tom has valued a wide range of buildings, including historic buildings, recycling and waste depots, and ski lodges.