What Is An Insurance Valuation?

A report prepared by a licenced insurance valuer who is qualified to calculate the replacement value of the building and common property. The valuer carries out a physical inspection of the property and provides a report and recommendation, which takes into account the full cost to rebuild the property in the event of a total loss. This will include demolition of existing building, removal of debris and rebuilding a new development including all fixtures and fittings.

A valuation report is an important investment for the Owners Corporation to maintain insurance at the correct level, and can sometimes even save owners a lot of money where they have been over-insured.

Why Is It Needed?

Legislation states that the Owners Corporation needs to have insurance in place to cover the full replacement value of all insurable assets of the Owners Corporation (insurable assets are those which, if lost or damaged, could cause a financial loss or other hardships). In order to determine the correct replacement value of the property, a licenced valuer should be engaged to carry out the appropriate calculations.

Read More Information here: Consumer Affairs Victoria - Insurance – Owners Corporations

Should We Have One Completed?

A valuation should be completed every 3-5 years, to maintain a good check on replacement and rebuilding costs.

Who Can Prepare It?

Only a licenced valuer should be engaged, and we would recommend one who is proficient in strata titles. It is important to note that a market appraisal, prepared by a real estate agent, is not the same as an insurance valuation.