Frequenty Asked Questions
| What is the difference between reinstatement and replacement? | The difference between reinstate and replace is that reinstate is to restore somebody to a former position or rank while replace is to restore to a former place, position, condition, or the like. |
| What is reinstatement basis of insurance? | Reinstatement cover means that the insurers will pay the cost of replacement with a new one which is equal to but not better than the item lost or damaged. This is usually the basis of cover under the Event Assured "all risks" cover, provided the sum insured represent the full replacement cost. |
| What does full reinstatement value mean? | Quite simply, the building sum insured, rebuild cost or reinstatement cost requested during building insurance application is the amount of money for which your building is insured for in case of total loss. The market value of your building or the Council Rate Valuation has no direct relationship to the rebuild cost. |
| What is reinstatement in a valuation report? | A reinstatement valuation generally assesses the estimated cost of reinstating a building on a date following total loss or such substantial damage that the entire structure requires demolition and rebuilding. |
| Do I need building insurance if I have strata insurance? | With strata buildings the body corporate or Owners Corporation is required by law to hold residential strata insurance, and this generally covers common or shared property under the management of a strata title. ... If there are gaps in cover, you may need to look to your contents cover under your home insurance policy to cover it. |
| What is reinstatement cost assessment? | Most insurance underwriters require a professional evaluation of a building's rebuilding cost following total destruction. Known as a Reinstatement & Replacement Cost Assessment (RRCA), their accuracy is crucial in ensuring that property is adequately insured and carrying out an RRCA is a highly technical exercise and should only be carried out by consultants who have building knowledge and Professional Indemnity Insurance (PI) to back their a Reinstatement & Replacement Cost Assessment report. |
| Is rebuild cost less than market value? | The rebuild cost is the amount it would cost to completely rebuild the damaged building if it were destroyed beyond repair. It includes the price of labour and materials. This cost is usually lower than your home's sale price or market value. |
| Are you paying additional and unnecessary insurance premiums? | Calculating your rebuild cost is important, the rebuild cost is the amount it would cost to completely rebuild your building if it were destroyed beyond repair. It includes the price of labour and materials. This cost is usually lower than the buildings sale price or market value. Basing your policy on your buildings rebuild cost will prevent you from over- insuring and paying higher premiums than necessary. |
| Calculating your home rebuild cost | If your building is made of non-standard materials (not brick-built) or has specialist architectural features, its rebuild cost may be higher than its market value. In this case, insure your building against the higher rebuild cost not the lower sale price or market value to avoid any insurance shortfalls. |
| What are fixtures | Fixtures are generally items which are attached, or ‘fixed’ to the property, the best way to remember what fixtures are is to remember that if it's attached (via screws, nails, glue, etc) to the walls, floors or ceilings, it's a fixture. While fittings or contents are items which aren't attached to the property, other than by a nail or a screw (such as a picture or mirror, other examples include light fixtures, ceiling fans, kitchen cabinets and so forth.. these items are part of the property and are therefore considered fixtures. |
| What are Contents | A general definition of contents is furniture, furnishings, unfixed electrical goods, valuables, paintings, portable personal possessions, clothing and unfixed household goods that are the property of the insured. The easiest way to determining what is a content is assuming you could tip the house upside down and any item which falls off is considered a personal content, where as fixtures are fixed to the structure for example kitchen cabinets, taps doors, fireplaces etc. If Insurance cover is required fro your contents you may need to insure these items seperatly. |