Building Reinstatement Cost Assessment (BRCA) is the assessment of a property/building’s reinstatement cost for insurance purposes. These are often referred to as fire insurance valuations, although they extend beyond fire-related insurance matters. The assessment is typically carried out by a qualified surveyor who calculates the cost to rebuild the property either by the application of a rate per square metre or on an elemental basis, calculated from building statistics. Building Reinstatement Cost Assessments are carried out on a wide range of properties and buildings, including commercial, industrial, agricultural and residential properties.
A BRCA entails an inspection and measure of the buildings on-site and the preparation of a Building Reinstatement Cost Assessment (BRCA) Report on property. The BRCA Report also advises the client on the total cost of demolition, rebuilding, reinstatement works, professional fees, statutory authority fees and the relevance of current statute which could impact the amount for which the property should be insured. It is important that the sum insured on any building is accurate to avoid under-insurance issues in the event of any claim. Such sum insured should be reassessed at least every three-five years or then alterations are carried out to the property.