Rebuilding cost is different from sale value
A strata insurance assessment concerns the scope of reinstatement or replacement costs. The sale price of individual lots and statutory land values are different measures and should not simply be used as substitutes.
Review changes to the building and cover
Tell the strata manager and insurance adviser about major work, additions and other changes. Check what the policy and assessment include, such as relevant demolition, professional fees or reinstatement considerations, rather than assuming every cost is covered.
When should the assessment be reviewed?
Use the applicable legislation, policy terms and professional advice for the scheme. Avoid treating a single national review interval as universally correct. The NSW Government provides guidance for NSW strata schemes; another jurisdiction may differ.
Prepare a useful assessment brief
Provide plans, building details, earlier reports, major works records and the insurer’s requirements. Identify unusual features and access limitations. Agree the report scope and valuation date before accepting the quote.
What the report does not guarantee
The report is an assessment within its agreed brief. It does not determine whether a particular loss is covered or guarantee payment of a future insurance claim. Those questions depend on the policy and circumstances.
Frequently asked questions
Can our sales appraisal establish replacement cost?
It answers a different question. Ask the insurance adviser what assessment is required.
Does a report replace reviewing the policy?
No. Review both the assessed amount and the policy’s scope, terms and exclusions.
Sources and further reading
- NSW Government: Managing strata finances and insurance — NSW strata insurance context and building valuation guidance.
Arrange the right report
Explore insurance valuations with Propti. Send the property address, purpose, required date and recipient’s instructions when you request a property report quote.