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Home » Strata Building Replacement Cost Assessment

Strata Building Replacement Cost Assessment

At Adelaide Property Valuers Metro, we are a full-service valuation company, offering an extensive range of property valuation services across all property types. In addition to this, we also fulfill niche needs which require a licensed property valuer, including strata building replacement cost assessments for building insurance purposes.

 

What is a strata building replacement cost assessment?

Strata building replacement cost estimates are different from our other services in that they are not a property valuation focused on finding the current market value of the building. Rather, they determine the cost of demolishing and re-building in case of a disaster.

Strata building replacements cost assessments are needed to ensure that a strata building is adequately covered by the building insurance for the cost of replacement and reinstatement. A certified property valuer is able to provide this cost estimate, accounting for:

  • Expenses involved with demolition
  • Any removal costs for debris
  • Professional fees associated with the redesign of the building, as well as construction works and supervision of demolition
  • Government fees, such as taxes
  • Cost of replacing the building, including all common areas
  • Costs of labour and materials

This assessment is undertaken in compliance with the Community Titles Act 1996 and using industry handbooks such as construction cost estimate guides.

In order to determine the replacement cost of the strata building, the valuer will inspect the building, noting the size, layout, number of units, as well as the features and fixtures and any additional improvements to the building. The building replacement cost assessment report will include these details, as well as a breakdown of each estimated cost involved with the building replacement.

 

When are strata building replacement cost assessments needed?

It is mandatory for all strata corporations to have building insurance that adequately covers the cost of building replacement in the cast of damage, partial or complete. Strata building replacement cost assessments are necessary to determine the correct amount of insurance coverage needed.

This is mandated in South Australia by the Community Titles Act 1996 and Strata Titles Act 1988 legislation, with penalty of a fine if not adhered to. Therefore, a strata building replacement cost assessment is needed when initially taking out building insurance for a new strata scheme to comply with government requirements.

Insurers recommend updating your strata building replacement cost estimate every few years, with the maximum time between assessments being five years. This is in order to ensure the building is property covered in case of damages, and additionally will give peace of mind that you are not over or under insured, both of which could be very costly.

Obtaining an updated strata building replacement cost estimate is especially recommended during market shifts, as the expenses needed to re-build could drastically increase leaving the strata building underinsured.

 

Why choose a certified property valuer for your building replacement cost estimate?

As a strata building replacement cost estimate is used for building insurance purposes, it is imperative to ensure an accurate replacement value is reached. An incorrect estimate can be very expensive, either due to overpaying on insurance premiums, or being underinsured in the worst case scenario.

At Adelaide Property Valuers Metro, we have property valuers who have specialised expertise in providing strata building replacement cost estimates. Additionally, all our valuers are certified and registered with the Australian Property Institute (API) and have over two decades of local experience.

This allows our valuers to provide accurate, detailed strata building replacement cost assessments, ensuring you are paying a fair price on your building insurance, and are covered in the case of disaster.

 

For more information on strata building replacement cost assessments, or any other service we provide, contact our expert team on (08) 70009 4446. We are always happy to answer any enquiries you may have.

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