Insurance Valuations

Question 1

What are the three types of loss covered for insurance?

Answer 1

Indemnity - cost replace or repair property to same condition (depreciated replacement cost)
Replacement/reinstatement - cost to replace or repair property to new condition
Reproduction - cost to reproduce an identical building

Question 2

What is included on insurance valuation?

Answer 2

Cost of construction
GST
Professional fees
Cost escalation for period of construction
Cost escalation for 1 year of insurance cover
Loss of income
Cost of demolition and removal of debris
Contingency cost