Whether you own a residential block, commercial premises, or mixed-use development, knowing the true cost to rebuild your property is essential. An inaccurate rebuild cost can lead to underinsurance or overinsurance—both of which carry financial risks.
A rebuild cost assessment ensures that your building insurance reflects the actual cost of reinstating your property from the ground up, including demolition, site clearance, professional fees, and materials. At Fraser Bond, we help property owners and investors protect their assets through reliable, up-to-date rebuild valuations conducted by certified professionals.
A rebuild cost assessment (also known as a reinstatement cost assessment) is an expert valuation of how much it would cost to completely reconstruct a property to its original specification following total loss—typically due to fire, flood, or structural collapse.
This figure is not the same as market value or mortgage valuation. It specifically relates to the insurance sum insured, and includes:
Demolition and site clearance
Rebuilding using similar materials and design
Architect, engineering, and surveyor fees
Planning permissions and building regulation compliance
External works (driveways, walls, landscaping)
If your sum insured is below the actual rebuild cost, insurers may apply the “average clause” and reduce any claim proportionally. For example, if your property is insured for £1M but the rebuild cost is £1.5M, you may only receive two-thirds of the claim payout—even in a partial loss.
Overstating your rebuild value leads to unnecessarily high premiums, with no additional benefit in the event of a claim.
Lenders often require up-to-date rebuild assessments as part of mortgage or refinancing conditions. Leasehold properties may also stipulate the need for accurate building insurance based on reinstatement value.
If your property has bespoke features, heritage elements, or non-standard materials, generic online calculators or market estimates are likely to be inaccurate. Specialist input is required.
Landlords and property portfolio owners
Freeholders or Residents’ Management Companies (RMCs)
Commercial property investors and business owners
Developers with newly completed or renovated buildings
Housing associations and institutional investors
The Royal Institution of Chartered Surveyors (RICS) recommends:
Full assessment every 3–5 years
Interim desktop reviews annually, especially during periods of inflation or construction cost volatility
Reassessment after any significant renovation, extension, or change of use
Property size and layout
Type of construction and materials
Age, listed status, or conservation area restrictions
Location and site access
Inflation in construction costs
Professional and statutory fees
Fraser Bond ensures that all relevant variables are considered by connecting clients with qualified, RICS-regulated professionals for comprehensive rebuild cost assessments.
While we do not perform rebuild assessments directly, we:
Arrange assessments through RICS-certified surveyors
Review insurance policies to ensure cover aligns with true reinstatement values
Advise landlords and developers on insurance structuring, especially for mixed-use or multi-unit properties
Coordinate with brokers to adjust sums insured based on professional reports
Ensure lender and lease compliance for investment-grade real estate
We ensure your asset is adequately protected, avoiding costly mistakes and unnecessary exposure in the event of a claim.
A rebuild cost assessment is not a luxury—it’s a critical component of responsible property ownership. Whether you’re safeguarding a single property or an entire portfolio, ensuring your building is insured for the correct amount is essential to mitigating financial risk.
Fraser Bond provides trusted guidance and connections to leading valuation and insurance professionals—so you can protect your property with confidence and clarity.
