24/06/2026
Own a commercial building? There's one step that can make or break your insurance cover, a professional valuation.
Insurance companies need a rebuild cost assessment before they can even quote you. And the rebuild cost is not the same as market value. Market value is what someone would pay to buy your property. Rebuild cost is what it would actually take to demolish and reconstruct it from scratch, to current building codes, professional fees included.
Get that figure wrong and you're either underinsured (potentially left out of pocket after a major loss) or overinsured (paying more in premiums than you need to).
A few other things worth knowing:
- Building age matters. Insurers assess buildings by construction era. Pre-1935 buildings generally attract higher premiums and excesses because building codes were very different back then. If your building has been earthquake-strengthened to 100% of New Building Standard, you may qualify for lower premiums.
- Improvements need to be captured. If you've made alterations or additions, your existing valuation may not cover them. Most policies include a capital additions limit (often around $100,000) to account for changes made during the year, but a current valuation is still important.
- Valuations don't need to be done every year. Reports typically cost somewhere between $800 and $2,500 and are generally valid for two to three years. You can find a specialist by searching for an insurance valuer, registered property valuers and quantity surveyors both offer this service.
A professional valuation is the foundation of getting your commercial property insurance right. It's not just a box-ticking exercise.
Have you had your commercial building valued recently, or is it something you've been putting off?
General information only, not financial advice. Gerrard's Limited (FSP1003639), trading as Gerrards, is a Financial Advice Provider.
