Does an independent building insurance valuation supersede the insurer's valuation?

An independent insurance rebuild valuation conducted by a quantity surveyor is generally considered the most appropriate way of assessing the building’s full replacement value. It’s important to note that insurers typically do not undertake these insurance rebuild valuations; this responsibility lies with the owners corporation.

Although no specific legislative requirement in NSW obliges the owners corporation to inform the insurer of a new valuation, it is highly advisable. This ensures the insurance cover accurately reflects the building’s full replacement value, in compliance with legislative requirements to insure the property for its full replacement cost.

Should you obtain a valuation that recommends a specific insurance amount, it is prudent to insure the building for at least the amount stated in this professional opinion to maintain adequate coverage and avoid underinsurance.

This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.