One of the major challenges with the insurance valuation of heritage buildings, wherever the location, is the correct approach to assessing the ‘replacement cost’ for insurance purposes. In this article, we explore the various concerns and interpretations to be taken into consideration in assessing heritage buildings and how John Foord can continue to provide clients with accurate and justifiable replacement values.
John Foord undertakes a significant number of heritage asset valuations globally and in this flyer, we explain factors that create complexity and our approach to handling them.
Reinstatement costs assessment for heritage buildings is full of complexities such as:
- The requirement to meet modern building codes
- Lack of suitable craftsmen
- Compliance with heritage regulatory bodies
- Public and local government sentiment
- Ability to (or lack of) procure original materials with required aesthetic and performance attributes
- Complexity by virtue composition i.e., a property consists of both heritage and non-heritage elements
- Need to address demolition or debris removal and access to possibly areas with conservation statutory status
- interpretation of replacements that may or may not be considered allowed in case of a total loss by heritage bodies
In this flyer, we look at our approach to handling these complexities when arriving at insured valuation sum for heritage building and include two specific case studies:
Case Study 1:
A major company owning several heritage buildings required a reliable and accurate valuation of sums insured.
Case Study 2:
One of our clients was in the process of converting a historic building into a hotel with elements of both heritage and non-heritage significance. We were asked to assess the insurance sums replacement cost approach.