Insurance Valuations are divided into two categories, being immovable assets such as Commercial and Residential Properties, and movable assets such as 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.
All replacements valuation reports of sectional title schemes conform to the Sectional Titles Schemes Management Act (STSMA), 2011 (Act No 8 of 2011) as well as the Prescribed Management Rules (PMR) with special reference to Prescribed Management Rule number 23 which deals with insurance