#24717
LGA

    Hello MyAimIsTrue,

    Insurance Valuations are approached differently by different professionals. Personally, I measure all buildings and cross check against the areas denoted on the Strata Plan. Areas such as foyers, stairs, plant rooms, driveways, gardens and grassed areas are not usually denoted on the plan and they therefore need to be physically measured to be accurately calculated. I then use current building and construction costs and time frames to determine the recommended sum insured. Information is obtained over time from various sources.

    Furthermore, it is not uncommon for some strata managers to provide the current sum insured. It is important however, as you have noted, that the assessment be done independently and simply adding a fixed percentage increase to that figure is not how the valuation should be arrived at. If there is a large discrepancy between the current insurance amount/previous valuation and the current valuation, then it does not hurt to have a conversation with the current valuer to determine where the difference might be. 

    I have seen many instances of buildings being seriously under insured and also cases of over insurance.

    Hope this helps.

    LGA.