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Building Insurance Valuation - All You Need To Know!
by Alisha Perry A BloggerIt is crucial to ensure that your building is valued rightly for the purpose of insurance. People working in the property domain must be aware of the term Building Insurance Valuation.
It is a process of estimation of price or value of the building for insurance purposes to ensure that you are covered if the worst happens. In a nutshell, insurance valuation is the assessment of the rebuild cost of the building. To do the Building Insurance Valuation, a surveyor visit the building to measure its value and calculate the rebuild cost.
Factors affecting the valuation
There are three main factors that affect the valuation of building for insurance purposes. So, the value of your property depends on these factors
Construction
The construction of the building directly influences its value. The specific materials used in the building are also considered in the valuation process. One of the methods of building valuation includes the measurement of the elements of a building to determine the new replacement costs.
Size of the property
The property size also affects the insurance valuation. A good surveyor establishes the per square foot value and also take various factors into account that may increase the value of the property like basements, attics, balconies, etc.
Location of the property
The property location is the key factor to determine the rebuild cost. If your property location is good then the value of your property will be increased. Whether your property is in the rural site or in a metropolitan, these location factors affect the cost of rebuilding.
So, now that you know what is Building Insurance Valuation and the factors that affect valuation, let's discuss how it can benefit you
- One of the benefits of conducting Building Insurance Valuation is that it ensures that your property is 100% protected. It is important to secure your property and be prepared in the events of loss.
- Insurance valuation is required to assure that you have sufficient funds to rebuild the property in the case of a total loss.
- Building Insurance Valuation may increase the property value by reducing the premium rates.
- Having your building insured may help to improve the facilities of borrowing on the basis of improved asset value.
So, these are the benefits of reinstatement cost assessment or building insurance valuation. Under-insurance might lead to the unwanted consequences that may cause financial loses. So, hire the expert surveyor to efficiently conduct insurance valuation through property inspection and cost estimation.
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About Alisha Perry 
A Blogger
79 connections, 1 recommendations, 248 honor points.Joined APSense since, January 21st, 2017, From Sydney, Australia.
Created on May 24th 2019 04:32. Viewed 415 times.
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