Ensuring you have insurance cover for buildings is essential. However, it is not simply a case of being insured, you need to make sure the building is valued correctly. If you are under-insured, you would be leaving yourself exposed to potential costs in the event of a claim – or if you are over-insured you would be paying unnecessarily high premium payments.
This is where reinstatement cost assessments come in.
A reinstatement cost assessment is the basis adopted by the Royal Institution of Chartered Surveyors (RICS) for undertaking an appraisal of property, plant and machinery or contents for insurance purposes. The term reinstatement indicates to repair, reconstruct, or renew assets to a condition equal to but not better than when new.
In simple terms, it is the cost of needing to rebuild the whole property from scratch. It would help if you looked at a worst-case scenario of, say, a fire destroying property from an insurer’s perspective.
Therefore, a pay-out will need to cover the old debris being removed and the new property being built literally brick by brick, back to what it used to look like before the fire incident.
A reinstatement valuation is not the same as market value. The market value is what the property interest is worth to a new buyer looking to use or invest in it.
The reinstatement valuation looks at the actual rebuild cost which is often higher than the market value. It would usually cost more money to physically rebuild a property than it would be to sell it to someone else.
Once you have the reinstatement valuation in place, this is called the ‘Declared Value’ of the property. However, an actual higher ‘Sum Insured Cost’ is then used in the insurance policy as the final liability. This is usually between 15 – 50% higher than the Declared Value to include an ‘Inflation Provision.’ This is a final buffer to allow for any increased costs over the period of cover.
RICS recommends that full reassessment valuations are carried out every three years although updated assessments should be undertaken whenever there are significant changes to the buildings.
In the event that the building is under-insured, the insurance provider may invoke the Condition of Average Clause where the total claim is reduced proportionally to the value of under-insurance. This would mean that the policy holder would be liable for the shortfall in the pay out.
However if the cover is too high, you would be overpaying in your annual premium.
There may be a lease on your property whereby the landlord is covenanted to have sufficient insurance cover on the building. Failure to ensure the Sum Insured is correct would be a breach of the lease.
Property management company’s risk being taken to the first-tier tribunal for negligence if reinstatement valuations aren’t undertaken every 3 years.
These assessments should be through a qualified RICS building surveyor in tandem with the Building Cost Information Service through the Association of British Insurers.
It’s basically using standard online tools for construction costs and making an assessment of a particular property and set of circumstances.
However, there are other lessor alternatives to consider such as a desktop valuation, which is simpler and cheaper. Through insurance brokers, a calculation can be carried out based on standard figures without even inspecting the property for between £100 – £500.
A first class team!!! Always very helpful
They’ve done a good job so far and easy to get hold of.
Horizon Management have been fantastic. Our previous management company were very unprofessional, not doing their job and hiking up their fees considerably every year.
Horizon Management have come in taken control from day one, are now charging a fair service charge, carrying out all the required duties and have been very transparent throughout. I would highly recommend!
To put some context in my review: Horizon manage a building where I own a flat and after years of mismanagement by the previous block managers, Centrick, Horizon took over the building with outstanding results. I find their approach to be extremely transparent, working hard to improve the building while not putting up costs unnecessarily. To me they are a breath of fresh air in an industry where its all to easy to exploit flat owners with lazy management.
I have absolutely no hesitation in recommending Horizon to anyone who wants a managing agent that actually works hard for leaseholders, freeholders and tenants.
We’ve had a great experience with the Horizon team, our questions have been answered straight away and work has been completed to a high standard. I would definitely recommend to anyone looking for a new building management team as we were.
Katie & Chris are pros. They’ve sorted all our problems immediately. They are very nice people to deal with. Highly recommend.
A really great company. Our previous Block Managers were providing a poor service and were expensive. Within a short period Horizon Management have turned the Block around at a considerably cheaper price. Highly recommended!
I rarely write reviews but felt compelled to write this.
The team at Horizon management is just fantastic, 100% on top of everything, hard-working and always there when I need them or have a question.
Cannot recommended them highly enough..????
Great communicators, timely, efficient and great to work with. I would 100% recommend working with this company.
The whole team has always been extremely helpful and responsive when dealing with any issues we have come across in any blocks they manage. A massive thank you to the continued hard work from Lisa and the whole team!
Excellent company, very conscientious and on the ball. The team are great and cannot do enough for you. Always contactable and helpful in every way. Highly recommended!
Great guys to work with everything was smooth highly recommend
Excellent Service, the team is friendly & reliable. Pleasure to work with.
My experience with Horizon Management has been great, pity they are no longer managing another apartment I own.
Very professional, friendly and hard working team. I would highly recommend their services.
Very recommended. Horizon team is very helpful. Working with them is a pleasure. ????????
I have really enjoyed working with Horizon Management. Their work ethic and blocks are first class.
A truly exceptional and professional service.
Attention to detail and level of competency are unsurpassed. Really recommend ????
Great company to work with, we’d highly recommend working with them! The team including Chris and Katie have been an absolute pleasure to deal with!
I have been dealing with Horizon for over 2 years now in a maintenance capacity. Throughout the years their responsiveness to their customers has been top notch.
This shows most when we (my maintenance business) are late or cannot make it to an appointment at one of their sites. The team are straight on the case, they always have a backup option.
It shows clearly that their customers investment is their top priority.
I can not recommend this friendly bunch highly enough! Well done.
Excellent company and team, couldnt recommend them enough.
Fantastic company with huge importance on customer service.
Every question gets answered and they are thoroughly professional.
Horizon only took over my block a few months before I sold up so I only have limited experience but it was all positive. Very helpful, professional people.
An absolute dream to work with.
They make everything simple, easy and straight forward.
Very easy to talk to and nothing is to much trouble.
5 stars isn’t enough!
Thanks Chris and the team!!
????????????????????????
Couldn’t fault them - since they’ve stepped in the service is so much better ????????
Brilliant company to work with, really responsive and can’t do enough to help!
Great company, whole team has always been helpful and responsive when dealing with any issues we have come across .A massive thank you! Absolutely satisfied and highly recommended .
We've used several management companies over the years to look after our apartment block , Horizon were recommended to us and we would not hesitate to recommend them to others
First class service from the whole team
I'm extremely impressed with Horizon Management. Their team is professional, attentive, and efficient. They've significantly improved the maintenance of our property and are always responsive to our needs. Their dedication to customer satisfaction is outstanding. Highly recommend for reliable and exceptional block management services.
Excellent service from the team at Horizon! A pleasure to work with.
Always reassuring to deal with a company who answer the phone and are helpful and friendly. Horizon look after my apartment building and have helped turn it around since the previous agents seemed to have given up!
Really good company to deal with, very professional. It is so rare to find someone good in this industry. Highly recommended.
Great company to work with, we’d highly recommend working with them! The team including Chris and Katie have been an absolute pleasure to deal with!
As always, the service from Horizon Management is clear, helpful, friendly and efficient. Katie and the team patiently explained everything to us and I have complete confidence that our legal matters will be completed to our total satisfaction.
A first class team!!! Always very helpful
They’ve done a good job so far and easy to get hold of.
Horizon Management have been fantastic. Our previous management company were very unprofessional, not doing their job and hiking up their fees considerably every year.
Horizon Management have come in taken control from day one, are now charging a fair service charge, carrying out all the required duties and have been very transparent throughout. I would highly recommend!
To put some context in my review: Horizon manage a building where I own a flat and after years of mismanagement by the previous block managers, Centrick, Horizon took over the building with outstanding results. I find their approach to be extremely transparent, working hard to improve the building while not putting up costs unnecessarily. To me they are a breath of fresh air in an industry where its all to easy to exploit flat owners with lazy management.
I have absolutely no hesitation in recommending Horizon to anyone who wants a managing agent that actually works hard for leaseholders, freeholders and tenants.
We’ve had a great experience with the Horizon team, our questions have been answered straight away and work has been completed to a high standard. I would definitely recommend to anyone looking for a new building management team as we were.
Katie & Chris are pros. They’ve sorted all our problems immediately. They are very nice people to deal with. Highly recommend.
A really great company. Our previous Block Managers were providing a poor service and were expensive. Within a short period Horizon Management have turned the Block around at a considerably cheaper price. Highly recommended!
I rarely write reviews but felt compelled to write this.
The team at Horizon management is just fantastic, 100% on top of everything, hard-working and always there when I need them or have a question.
Cannot recommended them highly enough..????
Great communicators, timely, efficient and great to work with. I would 100% recommend working with this company.
The whole team has always been extremely helpful and responsive when dealing with any issues we have come across in any blocks they manage. A massive thank you to the continued hard work from Lisa and the whole team!
Excellent company, very conscientious and on the ball. The team are great and cannot do enough for you. Always contactable and helpful in every way. Highly recommended!
Great guys to work with everything was smooth highly recommend
Excellent Service, the team is friendly & reliable. Pleasure to work with.
My experience with Horizon Management has been great, pity they are no longer managing another apartment I own.
Very professional, friendly and hard working team. I would highly recommend their services.
Very recommended. Horizon team is very helpful. Working with them is a pleasure. ????????
I have really enjoyed working with Horizon Management. Their work ethic and blocks are first class.
A truly exceptional and professional service.
Attention to detail and level of competency are unsurpassed. Really recommend ????
Great company to work with, we’d highly recommend working with them! The team including Chris and Katie have been an absolute pleasure to deal with!
I have been dealing with Horizon for over 2 years now in a maintenance capacity. Throughout the years their responsiveness to their customers has been top notch.
This shows most when we (my maintenance business) are late or cannot make it to an appointment at one of their sites. The team are straight on the case, they always have a backup option.
It shows clearly that their customers investment is their top priority.
I can not recommend this friendly bunch highly enough! Well done.
Excellent company and team, couldnt recommend them enough.
Fantastic company with huge importance on customer service.
Every question gets answered and they are thoroughly professional.
Horizon only took over my block a few months before I sold up so I only have limited experience but it was all positive. Very helpful, professional people.
An absolute dream to work with.
They make everything simple, easy and straight forward.
Very easy to talk to and nothing is to much trouble.
5 stars isn’t enough!
Thanks Chris and the team!!
????????????????????????
Couldn’t fault them - since they’ve stepped in the service is so much better ????????
Brilliant company to work with, really responsive and can’t do enough to help!
Great company, whole team has always been helpful and responsive when dealing with any issues we have come across .A massive thank you! Absolutely satisfied and highly recommended .
We've used several management companies over the years to look after our apartment block , Horizon were recommended to us and we would not hesitate to recommend them to others
First class service from the whole team
I'm extremely impressed with Horizon Management. Their team is professional, attentive, and efficient. They've significantly improved the maintenance of our property and are always responsive to our needs. Their dedication to customer satisfaction is outstanding. Highly recommend for reliable and exceptional block management services.
Excellent service from the team at Horizon! A pleasure to work with.
Always reassuring to deal with a company who answer the phone and are helpful and friendly. Horizon look after my apartment building and have helped turn it around since the previous agents seemed to have given up!
Really good company to deal with, very professional. It is so rare to find someone good in this industry. Highly recommended.
Great company to work with, we’d highly recommend working with them! The team including Chris and Katie have been an absolute pleasure to deal with!
As always, the service from Horizon Management is clear, helpful, friendly and efficient. Katie and the team patiently explained everything to us and I have complete confidence that our legal matters will be completed to our total satisfaction.
A first class team!!! Always very helpful
They’ve done a good job so far and easy to get hold of.
Horizon Management have been fantastic. Our previous management company were very unprofessional, not doing their job and hiking up their fees considerably every year.
Horizon Management have come in taken control from day one, are now charging a fair service charge, carrying out all the required duties and have been very transparent throughout. I would highly recommend!
To put some context in my review: Horizon manage a building where I own a flat and after years of mismanagement by the previous block managers, Centrick, Horizon took over the building with outstanding results. I find their approach to be extremely transparent, working hard to improve the building while not putting up costs unnecessarily. To me they are a breath of fresh air in an industry where its all to easy to exploit flat owners with lazy management.
I have absolutely no hesitation in recommending Horizon to anyone who wants a managing agent that actually works hard for leaseholders, freeholders and tenants.
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