The correct sum insured, for every property.

A reinstatement cost assessment (RCA) also called a rebuild cost assessment is a formal RICS-regulated calculation of the full cost to rebuild a property from scratch for buildings insurance purposes. It covers demolition and site clearance, structure, finishes, communal areas, professional fees, statutory fees, and VAT where applicable. It is not the same as market value, and only a current reinstatement cost assessment produces a defensible declared value for your insurer.

The terms are used interchangeably throughout the UK insurance market. A reinstatement cost assessment and a rebuild cost assessment both refer to the same RICS-regulated exercise: calculating the full cost to rebuild a property for buildings insurance purposes. At Stearling Reinstatement we use both terms the formal RICS standard is the same whichever name is used.

Market value is what a buyer would pay on the open market. Reinstatement cost or rebuild cost is what it costs to reconstruct the building from cleared ground. In many locations they diverge significantly: a central-London flat may be worth £800,000 on the market but cost £350,000 to rebuild. Insuring at market value causes over-insurance and inflated premiums; insuring below true reinstatement cost triggers the average clause on every claim.

RICS guidance requires a formal rebuild cost assessment at least every three years, with annual BCIS-indexed inflation adjustment in the intervening years. Where a building has been extended, altered or significantly refurbished or where no formal reinstatement cost assessment has been carried out since before 2020 a fresh assessment should be commissioned before the next renewal.

Managing agents and RTM companies that arrange buildings insurance for blocks carry a direct legal obligation to insure to full reinstatement cost. Where the declared value is inadequate and a claim arises, the insurer applies the average clause and reduces the payout and the managing agent or RTM can face a professional negligence claim from leaseholders for the shortfall. A current RICS-regulated reinstatement cost assessment is the documented evidence that the obligation was properly discharged.

The insurer applies the condition of average and reduces every claim payout proportionally. If a building's true rebuild cost is £2m but it is insured for £1.4m, a £200,000 claim pays out only £140,000. Leaseholders can pursue the party responsible for arranging insurance for any unrecovered loss. A current reinstatement cost assessment is the primary protection against this outcome.

We provide reinstatement cost assessments and rebuild cost assessments across the whole of the UK. Desktop assessments are available for any property nationally, typically delivered within 24 hours. On-site surveys cover England, Scotland, Wales and Northern Ireland.