Strata Building Insurance Valuations
Building insurance valuations should be completed regularly to ensure that your building or strata scheme is adequately covered if the worst were to happen.
If you own a strata unit, the Strata Titles Act 1985 states that building insurance must be held to cover the full replacement value of the development. This does not only include the cost of replacement, but also the cost of demolition and removal of debris; professional fees; and cost escalation over the lead time and reconstruction period.
Further complications can arise where the zoning the land may have changed since the development was first constructed and the buildings exceed what would be allowed under the new zoning. For example, a 10 unit development constructed in the 1960s is located on a site which under current zoning would only permit 6 units. In these instances, additional cover could be required as some unit owners may be displaced. Given the number of factors which should be considered, it is advisable to engage a suitably qualified professional to complete a building insurance valuation on a regular basis.
Contact our office on (08)9322 2070 to obtain a quotation.