What Is a Building Reinstatement Cost Assessment (BRCA) ?

What Is a Building Reinstatement Cost Assessment (BRCA)?

We sat down with Director, Matthew Gawne to talk through BRCAs – also sometimes known as Building Reinstatement Valuations (BRVs) – and why they matter.

A BRCA determines the cost of rebuilding a property in the event of total loss; an accurate reinstatement figure that ensures a property has the appropriate insurance coverage.

Insurance risk is portfolio risk

Ensuring a property has the correct reinstatement value is essential for effective risk management.

• Under-insurance may result in reduced insurance payouts if the declared value is lower than the true rebuild cost.
• Over-insurance can lead to unnecessarily high premiums.

An up-to-date BRCA aligns insurance coverage with actual rebuilding costs, offering clarity and financial protection for property owners and managing agents. RICS recommends reinstatement cost assessments be reviewed in line with inflation annually, with formal reassessments to be carried out at least every 3 years * https://www.rics.org/profession-standards/rics-standards-and-guidance/sectorstandards/building-surveying-standards/reinstatement-cost-assessment-of-buildings

In this video, Matthew covers:

• What the BRCA involves
• Risks of incorrectly declared values
• Recommended frequency for assessment reviews
• Which properties should prioritise a BRCA

Our highly experienced team provides clients with reliable valuations that form the basis for accurate insurance premiums and enables better financial planning. Get in touch with Matthew Gawne for more information.