Replacement Cost Estimates - Mitchell Brandtman

IS YOUR PROPERTY PROTECTED?

Understanding the Importance of Replacement Cost Estimates & Insurance

Staying informed about your property’s true replacement cost is a proactive step in protecting your asset. With the ever-changing landscape of construction costs and inflation, regular reviews of your property’s value are essential. Mitchell Brandtman can assist you in navigating this crucial aspect of property ownership, ensuring you’re adequately prepared for whatever the future holds.

Imagine the unimaginable: a fire, flood, or unforeseen disaster damages or completely destroys your property. In such challenging times, knowing that your insurance coverage accurately reflects the current cost to rebuild offers significant peace of mind. This assurance comes from having an up-to-date Replacement Cost Estimate, a service provided by our team at Mitchell Brandtman.

What is a Replacement Cost Estimate?

A Replacement Cost Estimate is a detailed assessment that determines the current expense required to replace an existing asset under today’s market conditions. For property owners, this means calculating the costs necessary to rebuild a home, commercial or industrial building in the event of damage or loss. Our team at MB will assess various factors, such as demolition costs, professional fees, and estimated construction cost, while accounting for potential price surges, to provide an accurate replacement cost value for insurance purposes.

Why is This Service Essential?

Over recent years, construction costs have experienced significant fluctuations. For instance, prices charged by building companies in Australia have increased by 32% over the last 5 years. Additionally, the country’s inflation has increased by an average of 3.7% annually over the past five years, peaking at 7.8% in 2022—the highest in four decades.

These economic shifts directly impact the cost of rebuilding your property, which is likely to be far higher than when you first insured it. Without an updated Replacement Cost Estimate, your insurance may no longer provide full coverage, leaving you financially vulnerable at a time when you need protection the most.

Who Benefits from a Replacement Cost Estimate?

Homeowners and Investors: Ensure insurance policies reflect the true replacement value of properties, safeguarding personal finances and investments.

Developers and Building Owners: Accurate insurance coverage is crucial to mitigating financial risks during and after construction.

Bodies Corporates and Strata Managers: Understanding replacement costs allows for the proper allocation of strata fees.

Why is this Important?

Mitchell Brandtman recognises the importance of timely and accurate Replacement Cost Estimates. Our team offers quick turnarounds and cost-effective services, providing you with a detailed breakdown of current rebuilding costs. This transparency benefits both you and your insurance provider, giving you the confidence that your coverage matches today’s construction market.