Establish the insurable value of buildings and equipment
The insurable value is the value of a good based on its insurable loss. This value often relies on the reproduction cost or the replacement of the insured good, as defined in the fire insurance policy.
SPE Valeur Assurable executes valuation mandates of residential, commercial, industrial, institutional and/or agricultural nature. Our firm’s expertise allows you to obtain a reconstruction valuation report, which will permit you to acquire sufficient insurance coverage.
If your property is located in a protected historical site in regards to the Cultural Property Act, or if it contains certain patrimonial elements, your insurance can include a reproduction value. SPE Valeur Assurable can also offer this type of service.
In the manufacturing industry, it is often essential to also obtain the replacement value of equipment, which generally constitutes major assets within the company. SPE Valeur Assurable can also execute this type of mandate in asset valuation (industrial and commercial), a task that requires specific technical skills as well.
According to your needs, our task consists of:
The reconstruction cost represents the cost to rebuild, at actual costs, an exact replica of the building, using the same type and quality of material, while respecting the construction norms, building design, layout and specialized qualified labor in case of a sinister. It could reveal impossible, illogical or inacceptable to reconstruct using the same materials and methods as the original construction. Therefore, one must foresee using quality material for the reconstruction.
Research shows that the reconstruction cost is always higher than the replacement value. This is explained by the cost and fees most often engaged in a total loss sinister. The reconstruction value includes the replacement value of the building, along with the installed equipment and the taxes (GST, QST), the demolition and overhaul costs, to which are added the architect and supervision fees.
The replacement value is the substitution cost required in order to build, at current prices, a building of equivalent utility than the one evaluated, using similar and modern materials, and in respect to the current norms, concepts and installation methods. The replacement cost can also be valued for movable assets.
The reproduction cost represents the building cost, at actual prices, of an exact replica of the building. It includes the reconstruction cost of the replica, at current prices and using the same or similar type of materials.
This value is defined based on several factors, for example: the commissioning of the equipment and/or furniture, the utilization period, and the efficiency and service life of the equipment and/or furniture. It represents the equipment and/or furniture’s value at the time of valuation.
For a peace of mind and to avoid any surprises in case of a sinister, trust professionals to assess the fair replacement value of your property!