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Understanding Your Report - Reinstatement Valuation

Posted on Thursday, January 8, 2015

When we have completed Homebuyer Reports or Building Surveys there are several questions we get asked frequently once our customer has recieved the report. This series of 'Understanding Your Report' is aimed to help with some of these more frequent questions.

Reinstatement Valuation/Figure

This is a figure that will be provided on your Homebuyer Report however it is not standard practice to provide one for a Building Survey (it can sometimes be included at an additional cost). The 'Description' section at the back of a RICS Homebuyer Report states the following:

Reinstatement cost is the cost of rebuilding an average home of the type and style inspected to its existing standard using modern materials and techniques and in line with current Building Regulations and other legal requirements.

This includes the cost of rebuilding any garage, boundary or retaining walls and permanent outbuildings, and clearing the site. It also includes professional fees, but does not include VAT (except on fees).

The reinstatement cost helps you decide on the amount of buildings insurance cover you will need for the property.

So, in a nutshell, the reinstatement figure is the figure you will need to provide to your insurance company, as the cost of rebuilding the entire property as it is, if for some reason the property was completely destroyed.