This applies irrespective whether your claim is to reinstate just part of your property, or a total rebuild on your land. The land cost of such valuations is normally excluded, as the site will usually be reused. Professional building surveyors are trained in this type of cost reinstatement assessment of buildings. They review the type of building, e.g. commercial, residential or industrial, the location geographically, type of construction, materials used, traditional or non-traditional, and physical size and area. There may be various outbuildings to some properties, and these may also need to be taken into account.
In a major fire, explosion or impact, the property may need to be demolished, and rebuilt, so the costs will have to include for professional fees and clearance costs of the site. If there are materials such as asbestos or contaminants on the site, they will have to be removed in accordance with current health and safety legislation. Those costs can be considerable. Plant and equipment, such as heating, electrical, water and gas installations may need to be reinstated.
Professional building surveyors will have access to historic building costs, and will apply this on a per square metre basis, to carry out the relevant calculation. In most cases they will need to visit the property, collect information, and do the valuation in the form of a report. Most such valuations are revised annually, or periodically, to ensure cost reinstatement valuations remain accurate.