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.
ur specific needs, our job is to:
The reconstruction cost is the cost, following a disaster, to build an exact replica of a building, at current prices, using the same type and same quality of materials, while respecting construction standards, the building design, the facilities, and the use of qualified and specialized labor. It may be impossible, illogical or inacceptable to use the materials and methods used in the original construction so the use of quality materials must be considered for the reconstruction. Research has proven that for a reconstruction, the reconstruction value is always higher than the replacement cost. This is due to the inclusion of costs and expenses incurred in a total loss incident.
The reconstruction cost includes the replacement value of a building, the fixed equipment and taxes, demolition and excavation costs, to which are added the architect and supervision fees.
Replacement cost is the opportunity cost required to build, at current prices, a building equivalent to the assessed value, and using similar modern materials according to the norms, concepts and modes of common development. Replacement cost can be estimated for tangible personal property as well.
The cost of reproduction represents the replacement cost of a building by another identical. It includes the costs incurred for the construction of a new property, an exact replica of the other, based on current prices and using the same kind of materials or materials broadly similar.
This is the value that is defined from different factors such as: the commissioning year of the equipment and/or furnishing, the uptime, the efficiency and the life span of the equipment and/or furniture. It represents the value of the equipment and/or furnishings at the time of evaluation.
For peace of mind and to avoid any unpleasant surprises in case of an incident, trust our professionals to assess the fair replacement value of your property.