Question: Is there a suggestion to align building valuation with maintenance plans schedule?
Answer: There is no crossover between these two reports in terms of content.
Both insurance valuations of the building and a maintenance plan should be updated every 5 years, this is industry best practice and often the insurers will request this of a scheme.
There is however no crossover between these two reports in terms of content.
A building valuation, also known as an insurance replacement valuation, is a report outlining the cost to rebuild your strata scheme if the worst was to happen and it was completely destroyed. This valuation guides the committee and the insurer to work out a suitable insurance policy based on this cost of rebuilding/ replacing. This is very different to a market valuation (which a lot of people get confused by), whereby the value of the property on the real estate market is determined i.e. what could it currently be sold or leased for.
The maintenance plan serves the purpose of anticipating major expenditure upon a timeline allowing the owners corporation to budget money aside in the form of a maintenance fund to meet these future expenses.
This post appears in the May 2022 edition of The VIC Strata Magazine.
Dakota Panetta Solutions in Engineering E: dakotap@solutionsinengineering.com P: 1300 136 036