Strata Insurance Valuation & Building Replacement Cost Reports
Strata Committees:
Is Your Building Insurance Keeping Up with Today’s Risks?
Owners Corporations must regularly assess whether their strata insurance coverage is sufficient to protect their building and shared property in the event of the unexpected. While compliance requires reviews of building insurance valuations, determining the correct insured value or replacement cost valuation can be challenging.
Each year, committees face the same critical questions:
- Has too much time passed since our last insurance valuation?
- Should we just apply indexation to last year’s figure, or could that expose us to risk?
- Would a new insurance valuation report be a better long-term investment?
- Are we still compliant with legislative requirements if we haven’t updated our valuation in several years?
WBP Group simplifies this process with strategic support from our experienced team of certified property valuers who specialise in strata building insurance valuations.
What Does a Strata Insurance Valuation Include?
A replacement cost insurance valuation for a strata property typically covers:
- The entire building structure, common property areas and all fixtures and improvements within each individual lot
- Public liability insurance for the shared/common areas
- Additional considerations, such as:
– Current construction and compliance costs based on today’s building standards
– Cost escalations for materials and labour
– Demolition and debris removal expenses
– External structures like fencing, pavements, driveways and on-site recreational amenities
Don’t leave your building exposed.
Speak to WBP Group’s experienced strata insurance valuation team and gain peace of mind knowing your insurance coverage truly reflects today’s rebuilding and replacement costs.
Frequently Asked Questions:
A strata insurance valuation is a professional assessment of the estimated replacement cost of a strata building, including common property and shared infrastructure. It ensures that the building insurance coverage is adequate to cover full rebuild costs in the event of a total loss, in line with legislative and insurance requirements.
No, relying solely on indexation can lead to underinsurance or overinsurance. Indexation doesn’t always capture sudden spikes in construction costs, inflation, or changes to building codes. A professional strata insurance valuation or replacement cost valuation ensures a more accurate and compliant coverage amount.
Underinsuring can result in the Owners Corporation covering shortfalls out-of-pocket after a claim. This can lead to special levies, financial strain and potential legal disputes. It may also breach strata legislation depending on your state or territory. A current insurance valuation report helps reduce this risk.
Certified valuers, like those at WBP Group, bring industry-recognised expertise, compliance knowledge and access to real-time replacement cost data, helping ensure your property is accurately valued and well protected with an up-to-date building insurance valuation.
