BCIS-driven · RICS-aligned annual valuation

Reinstatement Cost Assessments — rebuild cost for buildings insurance

The annual rebuild-cost valuation insurers and brokers expect. BCIS-driven, RICS-aligned, with itemised cost breakdown, professional fees uplift, demolition allowance, and inflation provision.

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What's in the assessment

Sections A–F — from inspection to total declared value.

AProperty & instruction detailsAddress, instructing party, insurer/broker, valuation date, basis (Day-One / Index-Linked), policy currency.
BBuilding descriptionConstruction, age, accommodation schedule, gross internal area (GIA), gross external area (GEA), specification (basic / standard / quality / luxury).
CCost build-upPer element rebuild rate from BCIS rebuilding cost data: superstructure, internal finishes, services, externals. Locality factor applied. Quality factor applied.
DAllowancesDemolition (typically 4–7%), site clearance, professional fees (typically 12–15%), VAT (recoverable / irrecoverable), contingencies, inflation provision (typically 12 months for annual review).
ETotal declared valueSum of build cost + allowances. Day-One value (today's rebuild) plus Index-Linked value (forward-projected to next renewal).
FSurveyor's declarationRICS-aligned attestation, BCIS data version, methodology summary, qualifications, AI disclosure.

Why annual reassessment matters

Underinsurance is the headline risk — and it's been getting worse year on year.

Average condition

Underinsurance is widespread

Industry surveys consistently find ~70% of UK commercial properties are underinsured. Construction inflation 2021–2024 ran far above standard index-linking, and many policies haven't been re-assessed in years.

Average clause

Average clause penalty

If the sum insured is less than the actual rebuild cost, insurers apply average — reducing every claim payout pro rata. A 30% under-declared sum on a £500k partial loss claim becomes a £350k payout.

RICS recommendation

Reassess every 1–3 years

RICS recommends a full RCA at policy inception and re-assessment every 3 years at minimum — annually for properties undergoing change, complex specifications, or in inflation-sensitive sectors. Index-linking alone isn't enough.

Reinstatement Cost FAQs

How is RCA different from market value?

Market value is the price the property would sell for in the open market today. RCA is the cost to rebuild it from scratch if it were destroyed — including demolition, debris clearance, fees, and VAT. The two figures are unrelated. A £400k market value house in central London might have an £800k rebuild cost.

What's the difference between Day-One and Index-Linked?

Day-One value is today's rebuild cost. Index-Linked value applies a future inflation provision so the policy stays adequate through the year. Most UK commercial policies use a Day-One basis with a percentage uplift (typically 25–50%) to absorb inflation between renewals.

What data source drives the cost rates?

RICS BCIS (Building Cost Information Service) rebuilding cost data — the industry-standard source for UK rebuild cost rates by building type, location, and quality. Rates are applied per square metre with locality and quality factors. The BCIS data version is recorded in the report so reviewers can replicate the calculation.

Are professional fees included?

Yes. The Allowances section adds professional fees on top of the build cost — typically 12–15% covering architect, structural engineer, M&E, project management, planning, building control. Demolition (4–7%) and contingencies are also captured.

Who can produce an RCA?

A chartered surveyor with relevant building cost experience — typically MRICS or FRICS in Building Surveying or Quantity Surveying. The signed declaration includes the surveyor's qualifications and PII statement, which insurers may request as supporting evidence.