The Importance of Getting the Reinstatement Value Right


Planning ahead is never a bad idea. However, in today’s unstable times, you never know when you would need to get your property reinstated. So, if you plan to get it reinsured, having a reinstatement value will undoubtedly be a requirement.

Let’s say you get your property insured without getting a formal valuation report, but it gets understated. Then, when your property gets damaged because of any disaster such as flooding, storm, or fire, the policy won’t be able to cover the reinstatement cost entirely.

More than one thousand fires had occurred in the residential buildings of Singapore in the year 2020. This depicts the severity of knowing how likely properties get damaged due to disasters.

So, it is essential to the reinstatement cost of your property before you get it insured. There are plenty of reinstatement services that will help you get the reinstatement value and rebuild your property to its original state after a disaster or even when you’re moving out of it.

What is a Reinstatement Valuation Report?

Your property insurance states a reinstatement value that informs you about how much money you will get to reinstate the property in case of a disaster. If the quoted reinstatement value is an estimate that doesn’t match the actual reinstatement cost, you will lose a lot of money.

Insurers usually misquote this value as the market value of the property or the amount paid for the property by the freeholder. They completely neglect the fact that reinstatement accounts for many other costs, such as architect fees, surveyor fees, and the cost required to pay for reinstatement service to clear the site and remove any debris safely.

Building reinstatement valuation report tells you how much it would cost to reinstate the building to its original form if a catastrophe hits the building.

If the reinstatement valuation report reflects a wrong value, the individual will have to settle with that amount when the catastrophe happens. You will only get the insurance money as stated in the agreement.

So, if you have settled for the market value or an understated reinstatement valuation report in writing, you will also have to agree with it in real life when the time comes. This is why an accurate reinstatement value report is so important.

How To Calculate Reinstatement Value?

There are many ways to get the reinstatement value, but the most full-proof way is to get a building surveyor from a reinstatement service who can give you an exact reinstatement value given all factors. Then, the inspectors will visit the building and conduct a thorough inspection ending up with a special reinstatement value report that can be relied upon.

Once he provides you with a reinstatement value, you can review and approve it. Then get your building insurance updated. But also make sure that you check that report every once in a while as the costs may rise due to inflation over time.


Valuation of the reinstatement cost of your property is one of the most important things to do before getting it insured. It will ensure you don’t lose any money or income you make from your property after the disaster because of the understated value. So, call for a reinstatement service to get your report ready.

About Author

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow by Email