Overview
When faced with rising insurance premiums, one commercial property owner discovered that choosing specialised Quantity Surveying expertise over a standard valuation service led to significant and unexpected savings.
Initially, our client had previously worked with a Registered Valuer who provided market valuations, rental valuations, as well as their insurance valuations.
Our Involvement
As Quantity Surveyors, Construction Cost Consultants are uniquely positioned to be able to leverage our construction expertise to provide a full elemental breakdown of rebuild costs to NZIQS-approved standards.
These detailed calculations enable insurers and brokers to price premiums and levies accurately, ensuring clients pay appropriate rates.
Our Building Assessor met with the tenant on-site to measure and gather specific property information. One of our Quantity Surveyors analysed this data, and then conducted a peer review of the figures before preparing the final report.
The comprehensive report covered an accurate Reinstatement Value and Fire Emergency Levy Calculation, including the building fit out.
Outcome
After the Construction Costs Consultants report was submitted, our client’s broker reduced their insurance premiums for this year compared to the previous year.
They saved on:
- The Fire Emergency Levy (19% reduction)
- The Company and Natural Disaster Premiums (due to the decrease in the replacement assessment cost)
Overall, our client saw a total like-for-like (same insurer) premium reduction of 10.5%.
This is instead of facing an increase in premiums with higher than necessary Replacement Value and Fire Emergency Levy calculations, as well as standard market movement.
“Because of the savings I’ve received on my commercial property from Construction Cost Consultants, I am also now going to have our family home valued as well.”
– Mike Johnston