Building Reinstatement Cost Assessment (BRCA)
What is a Building Reinstatement Cost Assessment (BRCA)?
A Building Reinstatement Cost Assessment (BRCA), also known as a Reinstatement Cost Assessment (RCA), is a professional evaluation aimed at estimating the cost of restoring a building to its original condition in the event of damage or destruction.
BRCA surveys play a crucial role in determining the appropriate level of insurance coverage necessary to safeguard property owners against potential losses. A BRCA survey considers various factors such as the type of construction, building size, current market rates for materials and labour, as well as any unique features or specialist characteristics of the property.
Why choose Sircle?
Our in-house, qualified and experienced building surveyors offer precise and comprehensive Building Reinstatement Cost Assessments that determine the cost of rebuilding your property.
The assessments we conduct are tailored to meet the needs of our clients while also protecting their investments, ensuring that their property has sufficient insurance coverage.
The Benefits of an RCA
- Ensured Insurance Coverage
A BRCA ensures you have the adequate coverage to fully rebuild or repair their property. - Regulatory Compliance
Maintain required insurance levels as per lenders or regulations with a BRCA. - Cost Efficiency
A BRCA ensures clients avoid over-insuring their property, resulting in savings on insurance premiums. - Informed Decision-Making
Use BRCA insights for smarter choices on renovations, upgrades, or investments. - Peace of Mind
A BRCA guarantees accurate insurance, securing your property’s future. - Effective Risk Management
A BRCA helps manage risks by understanding true rebuilding costs.
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Your questions answered
What is a Building Reinstatement Cost Assessment (BRCA)?
A BRCA, also known as a Rebuilding Cost Assessment or Insurance Valuation, is a professional evaluation of a property’s rebuilding cost. This type of survey is often carried out for insurance purposes, especially in the real estate and property management sectors. The main objective of a BRCA survey is to determine the accurate rebuilding cost of a property in case of damage or destruction so that it can be adequately insured.
Why is a building reinstatement cost assessment important?
A BRCA ensures that a property is adequately insured, allowing for full reconstruction in the event of damage or total loss. This prevents underinsurance, which could result in significant financial shortfalls.
Who can undertake a building reinstatement cost assessment?
These assessments are typically carried out by chartered surveyors or professionals with expertise in building costs and insurance valuation.
What are the key areas to consider when undertaking a detailed building reinstatement cost assessment survey?
The key areas to consider are:
- Desktop review
Of the building location, size, construction etc. using online tools and review the existing building details provided by the client i.e floor plans, construction details, specifications etc. - Property Inspection
A qualified/experienced (minimum degree level) surveyor to survey the property to assess its size, layout, materials, and overall condition. Measurement may need to be verified and checked from existing drawings. - Rebuilding Cost estimation
The surveyor is to calculate the cost of rebuilding the property, considering labour, materials, demolition, professional fees, etc. - Consideration factors
Location, local construction costs, and any legal or regulatory requirements that would affect the re-build cost - Report
Compile a report that will be issued to the property owner and/or insurer, breaking down and detailing the rebuild cost. The detail is crucial as it will determine the appropriate level of insurance required. - Insurance adjustment
Based on the output of the report the property owner can then adjust their insurance coverage to ensure it is at a suitable level to rebuild their building in the event of a disaster or damage.
What information do I need to provide for the assessment?
As a minimum you will need to provide building plans, details of any renovations or extensions, and information about the construction materials and methods used.
What if my property is underinsured?
If a property is underinsured, you may not receive enough funds from your insurance policy to fully rebuild your property to its original state in the event of a loss.
Will the assessment affect my insurance premium?
Yes, accurate reinstatement cost assessments can influence your insurance premium. Adequate insurance coverage based on the assessment can prevent financial shortfalls but may result in higher premiums.
How often should a building reinstatement cost assessment be conducted?
It is recommended to conduct these assessments every 3-5 years, or sooner if there have been significant changes to the property or fluctuations in the construction market.
Does the assessment include costs for upgrading to current building standards?
Yes, the assessment includes the cost of compliance with current building codes and standards, which might have changed since the original construction.
