Strata Building Replacement Cost Assessment

At Perth Property Valuers, we take pride in providing a full range of property valuation services, including specialised valuation types and niche purposes. This includes our strata building replacement cost assessment service which is required to be provided by a certified property valuer.

Our valuers all have over 20 years of local property market experience and are qualified with the Australian Property Institute (API). In addition, we have a team of property valuers who are experts in strata building replacement cost assessments.

Determining the replacement cost of a strata building requires a different approach to a property valuation, and as such it differs from our other services offered. This is why we have valuers who are trained and specialise in strata building replacement cost assessments.

With Perth Property Valuers, you can rest assured you are receiving the highest quality service, backed by experience and expert knowledge.

 

What are strata building replacement cost assessments used for?

Strata building replacement cost estimates are needed to ensure that a strata building is properly insured and fully covered by building insurance. The coverage of building insurance doesn’t merely cover the cost of the building, but rather covers the cost of replacement and reinstatement of the building in the case where it is irreparably damaged during a disaster. This includes expenses like:

• Demolition
• Removal of debris
• Professional fees and charges
• Government fees and taxes
• Labour and materials needed to replace the entire building, including common areas

In order to calculate the cost of these factors, the valuer will inspect the building, paying attention to the construction materials and fixtures, as well as the overall size, layout and improvements to the building. All areas and costs are included in the estimation, down to common areas, pools, gardens, and wiring.
When determining the replacement cost of the strata building, the valuer will also conduct thorough research and consult industry handbooks, including construction cost estimation guides.

This assessment takes into consideration the requirements for building insurance coverage dictated in the Strata Titles Act 1985. As a qualified professional, your valuer stays up to date with strata laws and is able to comply with any relevant legislative requirements.

 

How often is a strata building replacement cost assessment needed?

As mandated by the Strata Titles Act 1985, all strata buildings in Western Australia must take out building insurance that adequately covers the cost of replacing the building in case of damage, whether partial or complete. In order to correctly determine the level of insurance coverage needed, a strata building replacement cost assessment provided by an independent and certified valuer is required.

In order to ensure you are correctly insured, it is recommended to update the building replacement cost estimate at minimum every five years. It is also necessary after major shifts in the market, such as a recession or other significant global event.

Being properly insured is important, as being over insured or under insured can both be financially damaging. To receive an accurate strata building replacement cost assessment, be sure to choose an independent, certified and experienced valuer.

If you require a strata building replacement cost assessment or have any further queries, please contact our team on (08) 9468 3202. Alternatively, you can fill out an online enquiry form and we will get back to you shortly.