0419 944 234 frontier@iinet.net.au
FRONTIER Property Valuation

Insurance Valuations – Sydney

About Us

Property Valuation for Insurance Purposes

Frontier Valuations has highly trained property valuers with the technical knowledge, skills and experience to provide expert advice in all areas of property.  We are certified property valuers with membership at the Australian Valuers Institute. Because we live and work in Sydney we know the building construction costs of its various suburbs. We have experience in all building types along with forecasting the estimated time frame associated with redesign and construction.

We are happy to liaise with your nominated onsite contact (owners corporation representative) to arrange an onsite inspection.  Every courtesy is granted to owners and tenants alike to make sure they are not inconvenienced in any way.

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Frontier Property Valuation

Why Choose Us?

  • Over 20 years of experience with Sydney and NSW Property and Strata Insurance Valuations

 

  • Member of the Australian Valuers Institute, we undertake ongoing training and certification

 

  •  Fast turnaround and instant quotes

 

 

Are you a strata manager?

Strata Insurance Valuations

We work closely with Strata Management Companies to provide their clients with seamless service and high quality Strata Insurance Valuations.

More Information

Insurance Valuations

Why do I need a new replacement Insurance Valuation every 5 years?

Insurers generally encourage the Owners Corporation to review their level of cover each year on renewal of the policy. Even if the property owners accurately assessed the initial rebuilding costs, there is a strong risk that they will become underinsured.

The sum insured is increased annually by the insurer but after 5 years a significant gap can arise. ASIC has identified three measures used by insurers to increase the sum insured under their policies: the consumer price index (CPI), the house building index (HBI) and a specialist building cost index, known as CHIP. Between March 2000 and March 2005, the HBI increased by 12%, the CPI by 17%, and CHIP by 33%.

Adding a 5 to 10 percent increase to last year’s sum insured figure is simply just not good enough.

Furthermore, it was found that property owners generally failed to increase the sum insured following renovations and improvements to their property. For example; a 2003 survey by the Royal Automobile Club of Victoria (RACV) found that 24% of homeowners did not increase the level of cover after renovations costing between $20,000 and $40,000.

What is an Insurance Valuation Report?

An insurance valuation report includes a detailed description of your property, colour photographs and summary of the costs that make up the valuation. It’s an estimate of the actual cost to rebuild the building at the time of the valuation, assuming a total loss situation and a reinstatement with a new building(s) of similar size and materials.

An Insurance Valuation Report includes an …

  • Estimated of the current construction costs to construct a similar building (Rawlinsons Construction Cost Guide)
  • Allowance for cost escalation during the insured period and rebuilding process.
  • Cost of demolition and site clean-up,
  • Professional fees, town planers, architects, engineers and
  • Council fees and other costs depending on the type of property.

The sum insured include all costs that would be included in replacing the building.

 Common exclusions from insurance replacement valuation report are:

  • Tenants’ property
  • Loose furniture and equipment
  • Temporary accommodation
  • Loss of revenue
  • Finance costs
Strata Title Properties

It’s the Owners Corporation’s responsibility to maintain appropriate insurance cover to comply with regulatory requirements. For strata title properties, a building Insurance valuations need to comply with section 160 and section 161 of the ‘Strata Schemes Management Act 2015’. The act states that the owner’s corporation for a strata scheme must insure the building. And keep the building insured under a contract of insurance

  • And insures the building under a ‘damage policy’ … if it is destroyed or damaged by fire, lightning, explosion or any other occurrence specified in the policy.
  • A ‘damage policy’ for a building must be with an approved insurer,
  • Be in the name of the owner’s corporation, and any other person required to insure under Section 160

The 2016 regulations state the manner of calculation for an insurance limit under damage policy as follows;

  1. For section 161 (1) (a) of the Act, the minimum amount for which a building is to be insured is to be not less than the amount calculated by subclause 2).
  2. For section 161 (2) of the Act, the amount to which the liability of an insurer may be limited under a damage policy is to be calculated by adding together the following amounts:
    a) the estimated cost, as at the date of commencement of the damage policy, of
    carrying out the work that a damage policy is required to provide for under section 161 of the Act, and
    ii. making the payments that a damage policy is required to provide for under section 161 of the Act,
    b) the estimated amount by which expenditure referred to in the preceding paragraphs may increase during the period of 24 months following the date of commencement of the damage policy.
  3. The amounts referred to in subclause (2) (a) and (b) are to be calculated so as to include any applicable taxes, fees and charges (including taxes, fees and charges of the Commonwealth).

Community, Neighbourhood & Precinct Property

Building insurance valuations must comply with Section 39 of the Community Land Management Act 1989.

Why engage an Insurance Valuer?

A building insurance valuation provides a solid basis for the declared insurance values. In the event of a claim having a professional insurance valuation can greatly simplify and streamline the claim process. This can help prevent ensuing investigations by the insurer that can lead to a protracted claims process and delayed settlements which can take months or even years.

Insurance policies in Australia also place the burden of estimating rebuilding costs on the policyholder and it’s the policyholder that faces the financial consequences of under-insurance in the event of a total loss.

Choice Property Valuation provides independent property valuation reports for insurance purposes. You need an expert in this field as the industry is ever-changing, factors like new legislation, fire regulations, heritage-listed materials, fire combustible and toxic materials add to the complexity of the valuation process. We provide valuations for all types of properties.

What are the benefits of having a professional valuation?
  1. Save money by not paying excessive premiums due to over insurance
  2. In the event of a claim, you can avoid the financial consequences of underinsurance
  3. Fast-tracked claims process without disputes around the insured values
  4. Minimised interruption to business operations
Is your property’s rebuild value for insurance accurate?

Did you know the cost of building a new home has increased four-fold over the past 20 years?  If there’s a significant time gap since your last property Insurance valuation it would be a smart move to get a new building insurance valuation.

 

Case Study:

 

The Owners Corporation was over-insured by $2,842,000?

Christopher Welch the treasurer for strata plan 30699 at Sussex Inlet NSW suspected that their strata property was over insured so he contacted Choice Property valuations for a professional assessment.

Chris informed us that “It had been over 10 years since their last insurance reinstatement valuation and that the current sum insured for their property is $14,102,000.”

We conducted a site inspection of the property …

  • We compared the current strata plan with the existing buildings to determine if their had been any new renovations or extensions that could affect the rebuild value.
  • We assessed the site access for removal of debris and delivery of new building materials.
  • We also checked current council regulations and building codes which could have an affect on the rebuild value such as bush fire zoned areas or energy saving requirements of the rebuild materials.

The insurance replacement valuation report that we conducted found that $11,260,000 was a sufficient sum to cover all insurance rebuild value contingencies. A reduction of $2,842,000 was achieved which obviously led to a substantial yearly saving on insurance premiums. Over 5 years x $3,000 per year = $15,000 saving in insurance premiums.

Conversely I’ve found properties under-insured by Millions of dollars. Either way it makes sense to get a professional assessment at least once every 5 years.

Frontier Property Valuation

How much does an Insurance Valuation cost?

The Valuer is sometimes called a ‘Commercial Building replacement cost estimator’ undertakes an inspection of your property and checks building plans, dimension, architectural features and level of finishes. The valuer provides an insurance valuation report, the assessment also takes into consideration site access, council regulations, heritage listing etc. The fees below are for the Sydney metroplitian region.

Fees and Quotes

We prefer to quote each job individually to provide the most competitive price for each job.

As no two properties are the same, for example

  • 10 prestige Units at Bondi located on a cliff face = $500 + GST
  • 10 Units at Liverpool on a flat regular block = $300 + GST

Send us the address or list of properties and we’ll provide you with a competitive quote price.

We are happy to quote on jobs to keep the competition honest

Quotations vary due to the complexity of the task please contact our office for an obligation-free, written quotation.

What Our Clients Say..

Prompt response and professional approach to the valuation of our residential property. Direct feedback from the insurance company was that Choice’s valuation was of the very highest standard and more than sufficient for their requirements. 5 stars.

Chris Chard

We had a time deadline of less than 3 days for an insurance renewal – Danny came through. His estimate was in line with another analysis done by a much larger firm who specialise only on building estimations.

Mark Bailey

Highly recommend.
Danny done a fantastic report with special attention to details for our strata properties.

Saaid Towfighy

Danny was prompt and pro- happy to recommend him.

Andrew Woolaston

Danny was extremely knowledgeable, professional and patient as he assisted us in evaluating our valuation requirements. I recommend Choice Property Valuation for anyone who requires their services!

Brian Elbayeh

0431261031
L4 1-7 Daunt Avenue Matraville
amy@choicepropertyvaluation.com.au

For General Enquiries please fill out the Contact Form, or email amy@choicepropertyvaluation.com.au