RICS Knowledgebase

Paragraph 1.7 of PS1, Global Red Book 2025 states:

“an estimated replacement cost figure for assets other than personal property that is provided either in a written report or separately, for the purpose of insurance, is not a ‘written opinion of value’ for the purpose of ‘undertaking valuation services’ as defined in paragraph 1.2 above..”

The UK supplement to the Red Book effective from 1 May 2024 covers estimates for insurance purposes at UK VPGA 11.9 

Where the client requests an estimate for a reinstatement cost assessment it should be in accordance with the current edition of RICS’ Reinstatement cost assessment of buildings, or to appropriate market indices, which should be clearly referenced in the report. 

Clients typically expect valuers to be able to provide estimated replacement cost figures of houses (at least on an indicative basis and subject to caveats) but some will argue this work should only be undertaken by a suitably qualified Quantity Surveyor or construction cost expert so it is worth clarifying with whoever needs to rely on the figure if they have any stipulations as to qualifications or experience. 

Unless specified by the client a reinstatement cost figure does not need to be carried out according to The Red Book and therefore one does not need to be a Registered Valuer to provide these figures. 

For rebuilding, the BCIS rebuild calculator, often used for insurance purposes, is free to use after registering and is located at https://calculator.bcis.co.uk/

#Valuation

#Reinstatement