Building insurance value calculations

Tomtomtom said:
Yes, the confusion arises because you're not allowed to profit from loss, so if you try to insure a R 1-million house for R 2-million, and it burns down, you are only covered to the R 1-million.
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Trying to guess the replacement value of a property is more of an art than a science. Most sensible people should be overinsured when it comes to their buildings insurance just in case there is any disbute as to the actual replacement value.
 
W@P said:
Joh that sounds like a ball ache to sort out.
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My father is a classic Boomer generation born after WWII and started saving for retirement with his first pay cheque at 18. He is not the type to get screwed over financially and challenged his broker and underwriters multiple times over claims and changes to his policies. He has a Mediterranean temper like I do but is surprisingly calm in business type settings and being 6'3 and 120kg's for most of his life helped as well I guess :ROFL:
 
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deweyzeph said:
Trying to guess the replacement value of a property is more of an art than a science. Most sensible people should be overinsured when it comes to their buildings insurance just in case there is any disbute as to the actual replacement value.
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Get a recommended assessor that your broker and/or underwriter approve of and it makes things a lot simpler. It is the best R6k we have spent to have peace of mind that when claim time comes there are less chances of nonsense.
 
My house in CPT is insured by Discovery but I've been meaning to go a different route as I'm confident it's under insured. So what's the best approach? Get a broker/assessor? Any recommends for Cape Town?
 
prod said:
My house in CPT is insured by Discovery but I've been meaning to go a different route as I'm confident it's under insured. So what's the best approach? Get a broker/assessor? Any recommends for Cape Town?
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If you want a truly accurate assessment of how much it would cost to replace your property brick for brick then you need to get a professional quantity surveyor. This is literally their job. Everyone else is just pulling figures out of their bung holes.
 
prod said:
My house in CPT is insured by Discovery but I've been meaning to go a different route as I'm confident it's under insured. So what's the best approach? Get a broker/assessor? Any recommends for Cape Town?
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Find an assessor that your insurer/broker/underwriter is happy with and/or uses and get an assessment done. We did it last year when changing brokers...
 
Neuk_ said:
R5440, included building and content.
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And then how long does the valuation remain valid? Can you escalate by inflation next year and the year after and still be safe from risk of dispute?

Sectional titles are required to get valuation done every 3 years now. It's quite expensive if all they're doing themselves is applying an inflationary adjustment to the last one.
 
Tomtomtom said:
And then how long does the valuation remain valid? Can you escalate by inflation next year and the year after and still be safe from risk of dispute?

Sectional titles are required to get valuation done every 3 years now. It's quite expensive if all they're doing themselves is applying an inflationary adjustment to the last one.
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I actually don't know how long it is 'valid' for, there may not be a straight answer but assuming nothing major changes, I would guess 2 - 3 years. Obviously if something material changes like renovations or installing something large like solar, there is an assumed building cost escalation of 5% mentioned in the building valuation report.
 
Just take your SQM to work out the building costs <-- (cheap, medium, expensive) and that will tell you what it will cost to rebuild should it magically disappear.

The OP didn't mention the SQM or site position.
 
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