2. The valuation report starts off with a description of the property, its improvements, location and infrastructure.
3. It is in the interest of both the insurer and the insured for the report to also indicate risk and maintenance observations by the valuer, for example, the absence of firefighting equipment and security installations or the property’s general state of repair. In some cases, the valuer might even recommend that a risk surveyor or structural engineer be consulted additionally.
4. An itemised breakdown of all improvements serves to demonstrate how the valuer arrived at the total estimated replacement cost. Included in the replacement cost calculation are the current building rates, demolition costs, rubble removal, professional fees and additional building services. These elements are all affected by the specific building design, geographic location, underlying topography and other attributes.
6. Where a sectional title complex is being valued, it is essential that a Schedule of Replacement Values (SRV) is provided together with the valuation report. This indicates the floor area of each registered section and its undivided share in the common property. It also serves to establish each owner’s participation in the body corporate’s total sum insured.
7. An ample number of photographs of the buildings, site works, any maintenance issues and insurance risks should be included to support the replacement cost estimate.
More often than not, property owners only realise at the last minute that their insurance policy is up for renewal and that a professional valuation may be useful. Therefore, it is important that a valuer conducts a site inspection on short notice and deliver the report in a quick turnaround time.