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The Comprehensive Guide to Preparing an RICS Insurance Reinstatement Valuation


Property insurance is a crucial aspect of safeguarding one's investments and assets. To ensure you have the right level of coverage, it's essential to have an accurate understanding of your property's value. This is where the RICS (Royal Institution of Chartered Surveyors) Insurance Reinstatement Valuation comes into play. In this article, we will delve into the process of preparing an RICS Insurance Reinstatement Valuation and understand its significance.

What is an RICS Insurance Reinstatement Valuation?

An RICS Insurance Reinstatement Valuation is a comprehensive assessment of the rebuilding cost of a property in the event of damage or destruction, typically conducted by a chartered surveyor. The valuation helps property owners and insurance providers determine the appropriate level of coverage needed to fully restore the property to its pre-loss condition.

The Process

  1. Appointing a Chartered Surveyor: The first step in preparing an RICS Insurance Reinstatement Valuation is to appoint a qualified chartered surveyor. It is essential to choose a surveyor with relevant experience and expertise in the type of property being valued. The surveyor will conduct a site visit to assess the property's size, structure, materials, and unique features.

  2. Measuring and Recording Data: During the site visit, the surveyor will meticulously measure and record all relevant data about the property. This includes floor plans, external dimensions, and specific features such as extensions, outbuildings, or conservatories.

  3. Assessing Construction Costs: The surveyor will consider current construction costs, including materials and labor, in the local area. This ensures that the valuation reflects the current market conditions, as rebuilding costs can vary significantly over time and by location.

  4. Accounting for Special Features: If the property being valued has special architectural or historical features, the surveyor will assess their value and factor them into the final reinstatement cost. These features can significantly impact the overall cost of rebuilding.

  5. Applying Inflation Factors: To account for future changes in construction costs due to inflation, the surveyor will apply appropriate inflation factors to the valuation. This ensures that the insurance coverage remains adequate over time.

  6. Preparing the Valuation Report: After gathering all necessary data and performing calculations, the surveyor will compile a detailed valuation report. This report will include a breakdown of the reinstatement cost, including materials, labor, professional fees, and contingency allowances. It also includes a description of the property, any special features, and the assumptions made during the valuation process.

  7. Review and Update: It's essential to review and update the RICS Insurance Reinstatement Valuation regularly, as property values and construction costs can change over time. Most insurance providers recommend updating the valuation every 3-5 years to ensure accurate coverage.

Significance of RICS Insurance Reinstatement Valuation

  1. Accurate Coverage: The primary purpose of the valuation is to ensure that property owners have the appropriate level of insurance coverage. Underinsured properties may not receive adequate compensation in the event of damage or loss.

  2. Avoiding Overpayment: On the flip side, overestimating the reinstatement cost can lead to unnecessarily high insurance premiums. An accurate valuation helps property owners avoid overpaying for insurance.

  3. Regulatory Compliance: Many insurance providers and mortgage lenders require an RICS Insurance Reinstatement Valuation to comply with regulations. Failing to provide this valuation when required can result in legal complications and financial risks.


The process of preparing an RICS Insurance Reinstatement Valuation is a meticulous and essential step in protecting your property investments. By appointing a qualified chartered surveyor and following the outlined steps, property owners can ensure that their insurance coverage accurately reflects the cost of rebuilding their property in the event of damage or destruction. Regularly updating the valuation is equally important to keep pace with changing construction costs and property values. In the end, this valuation serves as a crucial tool in mitigating financial risks and ensuring peace of mind for property owners.

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