A Guide to Reinstatement Cost Assessments | RCA Survey

Reinstatement cost assessment – what is it and why do you need one?

A reinstatement cost assessment (RCA) is used to determine the cost of repairing, rebuilding or renewing a property to its current condition. An RCA survey ensures UK homeowners have the right level of insurance cover in the event of fires, natural disasters or other extensive property damage. 

This guide looks at reinstatement cost assessments, what’s included, whether you need one and more.

What is a reinstatement cost assessment?

A reinstatement cost assessment is the process set down by the Royal Institution of Chartered Surveyors (RICS) for appraising properties and their contents for insurance purposes. 

The consequences of under-insuring your property for less than the rebuild cost can be severe. If a fire or disaster occurs, your insurance payout may not cover the cost of rectifying the damage, leaving you to fund the repairs yourself. 

A reinstatement cost assessment, or RCA survey for short, ensures you have accurate insurance cover to pay for labour, materials and other costs associated with rebuilding your property to a state equal to but not better than when it was new. An RCA survey also protects against under and over-insurance so that you only pay for the correct amount of cover for any repairs or building work that you may need. 

How does a reinstatement cost assessment work? 

There are four key stages to a reinstatement cost assessment. The process for conducting an RSA survey includes: 

1. Perform an initial assessment

A reinstatement cost assessment starts with collecting information about the property, such as the size, location, construction materials and other key details to provide a thorough evaluation. 

This initial assessment is often conducted in two different ways: by sending a qualified surveyor to inspect the property in person, or via online services that combine formulas and expertise to reach a conclusion. 

2. Collect the data

An initial assessment is followed by a deeper dive into your property to gather important data that may affect the decision-making process. This typically includes details about the property’s construction, its overall condition, and any unique or notable features. 

An RCA survey may also ask for a review of your building plans and other relevant documents that would help produce an accurate evaluation assessment. 

3. Estimate the cost

All data that’s been collected is then used to calculate the cost of rebuilding your property. A reinstatement cost assessment considers many things including: 

All these details are factored into a cost estimate of rebuilding your property so that you have the correct amount of insurance cover. 

Why do you need a reinstatement cost assessment?

RCA surveys are not mandatory in the UK, but they are crucial for determining the correct amount of insurance needed to rebuild a property in the event of fire, damage or destruction. 

When you insure a property, your insurer will ask for an RCA. As a homeowner, having an accurate RCA meets your obligations and provides peace of mind that you have sufficient insurance protection in place to fix or rebuild your property.  

Without an RCA, you could be open to legal implications and be held liable for negligence.  

Which types of property require a reinstatement cost assessment?

A reinstatement cost assessment benefits all types of homeowners. Whether you own a single property or vast portfolio, having the correct insurance cover for buildings and contents is essential. Simply being insured isn’t enough, and many properties and contents are either under-insured or over-insured, leaving you vulnerable in the event of a claim. 

• Under-insured: Your insurance payout would not cover the cost of repairing or rebuilding your property, leaving you financially exposed 

• Over-insured: You’re paying unnecessarily high premiums for cover that you may not need  

An RCA survey ensures you are paying for the right level of insurance cover for your property. A reinstatement cost assessment carried out by an RICS regulated company is also recommended if your property was built using non-standard materials such as stone, is a listed building, has unique design features, has been altered, has valuable fixtures and fittings, is in a remote location and difficult to access, or has changed its use. 

How often should you get a reinstatement cost assessment?

The Royal Institution of Chartered Surveyors recommends getting a reinstatement cost assessment every three years, or earlier if significant changes or alterations occur such as extending or converting a property.

If you’re in the process of buying a property, a home survey such as RICS Level 2 or RICS Level 3 comes with a reinstatement figure included in the service.

Looking for a home survey to go with your reinstatement cost assessment?

At e.surv, our home surveys provide a range of benefits for property owners. From spotting structural defects to assessing the overall condition, a survey offers peace of mind and could even help homebuyers strike a better deal. Get a quote today.