This article is about the replacement costs and building valuation fees for small strata schemes in Western Australia.
Question: How can small strata schemes accurately determine the replacement cost of their building when faced with prohibitive valuation fees and a lack of suitable online calculators?
We are a three lot strata. We paid several hundred dollars last year for a building valuation. Our current insurer suggested we are now significantly undervalued, particularly with rising costs. Quotes for new valuations start from $1.5K, which is prohibitive for us.
All online calculators seem to use the same database and specifically state they are not suitable for strata insurance. They seem far too general, anyway. A ‘cost per lot’ quote has been suggested and seems to be the most comprehensive.
How can small strata schemes reasonably calculate the replacement cost of our building if we cannot afford the excessive valuation fees and no suitable online calculator exists?
Answer: The company that did last year’s valuation should be able to provide a desktop valuation for a good price.
I definitely wouldn’t trust online calculators. They are far too generalised. The valuation quotes seem high unless you are in a remote location. Consider shopping around.
Your strata scheme’s valuation done last year would be a more accurate qualified opinion than the insurer’s opinion. The company that did last year’s valuation should be able to provide a desktop valuation for a good price. It should include any cost increases since last year.
Zac Gleeson
GQS
E: [email protected]
P: 0419 755 896
This post appears in Strata News #688.
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