Need a building inspection? Contact DDP2022-12-13
GVR 2023 – What you need to know2023-03-06
Written by: Mandisa Ndlovu
Under-insurance is an unfortunate hard-hitting reality that leaves many individuals and companies in financial hardship. With harsher weather conditions becoming the norm, it is imperative to ensure that your most valuable assets like your home, office or income property are appropriately covered in case of disaster.
According to Mr Tinus Geyser, CEO of DDP, one of the biggest mistakes consumers and businesses make is to confuse a property’s market value with its replacement cost. So, what is the difference?
The market value of a property refers to the estimated amount that a willing buyer and seller can agree upon for that property.
Replacement cost, on the other hand, refers to the amount that should cover what it will cost - at the time of the claim - to repair or rebuild the property from the foundation up. The replacement value will be influenced by a different spectrum of variable factors, including the demolition and cleaning of the erf before starting to rebuild.
Knowing all the variables that will impact your property’s replacement value can be challenging. Fortunately, knowledgeable Valuers like DDP can assist with this task, ensuring that your property is appropriately insured for those unforeseen rainy days.
At DDP, all relevant factors are combined in a quality valuation report to provide trustees, property owners, and shareholders with the correct replacement value and peace of mind that their insurance policy can do the work it sets out to do.
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