COMMERCIAL AND RESIDENTIAL PROPERTIES     |     Plant and Equipment

Insurance Valuations are divided into two categories, namely Commercial and Residential Properties, and Plant & Equipment. 
Many properties are insured at their market value, but this is a risky mistake as the market value seldom reflects the replacement value of the building structures and other improvements found on the property. The insurance value of your property should be the cost to replace all the improvements. Here it is important to know whether your buildings are ensured at replacement cost or reproduction cost. Normally historic buildings and buildings with unique architectural designs and building materials are insured at reproduction cost, while the rest are insured at replacement cost.

​Cutting corners on building insurance could be seen as a way to economise for both the private property owner, business owner and sectional title body corporate. However, the consequences of under-insurance are far reaching and can end up costing a property owner far more than the savings they make by minimising their insurance spend. If your property is incorrectly insured, you may be left seriously out of pocket in the event of a claim since the insurer may apply the average clause if it is found that the property was under-insured.

PPE Valuations ​can provide you with an accurate replacement or reproduction cost estimation of your building, whether it is a beachfront holiday house, a 5 000 sqm distribution warehouse, five star hotel or a sectional title apartment complex.

Replacement values used in our reports are based on publications from reputable quantity surveyors, i.e. The yearly published AECOM African Construction Cost Report, as well as inputs from local builders, suppliers and quantity surveyors.

Our reports include the cost of demolition, professional fees, cost inflation over the insurance period and VAT at the current rate. We offer an example of a replacement cost report.
​Plant and Equipment is normally ​insured under the “All Risk” section of a short-insurance policy for cover in the event of destruction by fire or other catastrophic events. However, plant and equipment can also be insured under a Machinery Breakdown (MB) insurance policy which offers protection against sudden and unforeseen physical loss or damage to machinery which has been erected and is operational or at rest.
The purpose of a valuation will therefore be to provide the insured party with an accurate assessment of the value at risk in respect of the plant and other equipment for which the insured party is responsible with due reference to the terms and conditions of the insurance policy.
Some insurance policies require the market value as opposed to the replacement value as the basis of the insured value. It is therefore important that the insured party and the valuer understand the terms of the policy.
Furthermore, with the ever-increasing cost of plant and equipment due to rising inflation and weaker exchange rates it is important that the insured values are kept up to date to reduce the risk of underinsurance and the application of Average by the insurer in the event of a claim.
PPE Valuation specialises in the valuation of agro-processing equipment and is therefore well-positioned to supply any insured party with the correct market or replacement values and in the correct format for presentation to the insurer.​