Reinstatement cost assessment
Ensuring that your property is appropriately insured is essential for property owners, tenants and leaseholders. In many instances, it is a specific requirement under the terms of a commercial lease. For residential block management, it will either be the freeholder’s, landlord’s or management company’s responsibility.
It is required for clients and their agents to comply with their respective codes of practice and guidance notes:
- Commercial property management in England and Wales RICS guidance note
- Service charges in commercial property RICS professional statement
- Service charge residential management code and additional advice to landlords, leaseholders and agents
- ARMA Consumer Charter and Standards (Edition 2A)
Preparation is key to getting assessments correct. In the event of a claim, the surveyor's assessment will be under scrutiny and, if found wanting, may give rise to a claim of professional negligence. Conversely, an assessment of a property that is in excess of the appropriate figure will incur the landlord, tenant or leaseholders additional and unnecessary premiums, and may involve discussions on the veracity of the assessment.
The assessments are not valuations and therefore not covered by the requirements of RICS Valuation – Global Standards, the ‘Red Book’.
This section is maintained by Michael Lee, Director of Michael R Lee Chartered Surveyors.