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What is the re-build or re-instatement value of the property?

April 26, 2017Property re-build re-instatement value

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What is the re-build or re-instatement value of the property?

1 Answer

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10 Posted

The re-build or re-instatement value is how much it would cost to re-build the property if it were totally destroyed. Buildings should always be insured for their re-build value and NOT the market value. The reason for this is that the market value is affected by the location of the property and takes into account the cost of the land on which it is built. The rebuild value of a property will remain constant, only increasing in line with inflation, regardless of the market value.