Hi,
I am looking over my annual costs and would like to reduce my landlord insurance. When I strata titled my units the insurance premium increased from $1200 pa to $2600 pa. However, I did increase the replacement value of the building too and I realise now that I am not sure how I should calculate it or who to ask how much it should be?
I purchased the units a couple of years ago for $415K and after reno and strata title they are now valued at $650K. It is a single level brick triplex from the 70s. How do i find out what the replacement cost would be?
Grateful for any input how to go about this.HoBe
Hello HoBe,
Increasing the replacement value of the building is a sure fire way to increse the insurance premium, as it is directly related!
When you look into the insurance valuation for your property, consider not only the cost the construction itself (i.e. trade costs), but also costs associated with demolition and removal offsite, professional fees, authorities fees and escalation to name some.
Regards,
Constructivity
http://www.constructivity.com.au
Tax Depreciation Schedules – Sinking Fund Forecasts – Insurance Valuations
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