A professional replacement cost valuation ensures that a property owner is correctly covered but it also serves as an invaluable marketing tool for the insurance industry.
Therefore, while the view and location increased the market value – the value the home will sell for on the open market – the insured value only needs to reflect the cost to rebuild the house as it stands currently.
Insurance is often considered a grudge purchase. That is, until it is time to lodge a claim. The same can be said of a legally prescribed valuation for sectional title schemes. Bodies corporate only appreciate its value when their claim is paid out in full without any insurer dispute. In addition, a building valuation is expected to be prudently done but low-priced.
The new property levy will be determined based on the market value allocated to your property in a mass appraisal procedure. The mass appraisal techniques used by the General Valuation Roll leave ample room for error. All ratepayers will be afforded the opportunity to view the valuation roll and object to the municipal valuation if they do not agree with the assigned value.
It is important to remember is that the true intention of the STSM Act is to remedy many of the shortcomings that may currently be the cause of sectional title owners losing value in their property investments.