Service

The instruction is in respect of an assessment of building reinstatement cost for insurance purposes and is not a Market Valuation.

The valuation report shall be based upon an inspection of the subject property by a suitably qualified and experienced Chartered Surveyor who will then produce a standard format Valuation Assessment Report.

The Valuation Report is prepared for the sole use of the client(s) and their professional advisors.

The Valuation shall be based on a site visit, measurement and an assessment of reinstatement cost.

The extent of what is to be insured shall comprise the main building and any significant outbuildings/garages or significant leisure amenities such as swimming pools.

The base date for the assessment shall be the inspection date, unless confirmed otherwise by the Client.

The assessment is made on the basis of total loss or such substantial damage that the entire building will require demolition and re-building.

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The reinstatement cost assessment is prepared on the basis of ‘day one reinstatement’ figure, known as the declared value.

The declared value figure is the equivalent of a fixed price, lump sum, competitive tender submitted by a competent contractor for works to commence on the first date of the period of insurance together with appropriate allowances for demolition and other costs associated such as professional and/or other statutory fees. ­

The reinstatement sum should be adjusted on a regular basis, with an annual adjustment to reflect inflationary effects. A major review and reassessment should be carried out every 3 years (or earlier should significant alterations be made to the insured property).

This service is intended for use only in situations where the client requires a reinstatement cost figure for insurance purposes and does not comment on specific advice relating to the condition of the property.

The Valuer shall use the RICS Building Cost Information Service (BCIS) to obtain appropriate built cost rates specific to the property type, style, size and location. 

Neither the whole nor any part of the Valuation Report or any reference hereto may be included in any published documents, circular or statement or published in any way without the valuer’s written approval of the form and context in which it may appear.

The valuation will be undertaken in accordance with the RICS Professional Standards and Guidance.   

 

The Valuer

The valuer will be a Fellow (FRICS), or Member (MRICS) of the Royal Institution of Chartered Surveyors (RICS) who has the appropriate knowledge, skills and understanding to inspect, value and report upon the subject property.

The valuer will be an employee of House to Home Surveys Ltd.

The valuer will act in accordance with the RICS Valuation – Professional Standards as amended from time to time. Compliance with these standards may be subject to monitoring under RICS conduct and disciplinary regulations.

The valuer will have suitable equipment for inspecting and measuring the property which will be used where deemed to be necessary, safe and practical at the valuer’s discretion.

The valuer will immediately inform you of any known or suspected conflicts of interest, if applicable and will then confirm your instructions before proceeding further.

The valuer will not be acting as an expert within the meaning of Part 35 of the Civil Procedure Rules unless specifically instructed to do so in a separate signed agreement.

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The Inspection

The valuer will undertake a brief, limited inspection of the subject property in order to gather information needed to complete the reinstatement cost assessment.

The valuer will not carry out a survey and will not inspect any part of the structure which is covered, unexposed or inaccessible. Carpets will not be lifted and furniture will not be moved.

The valuation will carry out a general inspection of the property and its environment before beginning a detailed inspection, confirming the extent of the property being inspected conforms with the extent that has been instructed by the Client.

The Valuer will assess the age of the property. If an assessment cannot be given without a degree of certainty, the RICS member or firm shall give an opinion on the buildings era.

In assessing the environment, the valuer will consider any restrictions to demolition and rebuilding which may impact the cost of re-build and which should be reflected in the valuation assessment. Such factors noted include whether there are nearby buildings, the occupation of which may affect working hours or whether the property is detached or semi-detached/terraced and therefore if there are any additional professional consultants fees likely to be encountered in such demolition/re-build works relating to Party Walls. The valuer will also take into consideration whether there are any deleterious materials present which may result in an increase cost of demolition.

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The valuer shall take notes, photographs and measurements to record:

• the layout of the building

• measurements sufficient to calculate the Gross External Floor Area (GEFA) as defined in RICS Property Measurement

• a schedule of accommodation

• a summary of the buildings services

• a summary of the external areas/boundaries/outbuildings/garages

• any specialist features (internal or external) which shall be considered as extra over the standard building finishes or which influence the assessment

• a summary of the general topography ­­­

 

The Cost Assessment

The valuer will produce a final assessment figure which will comprise the total cost of completely rebuilding the property to be insured (net rebuilding cost), together with allowances in respect of other matters such as demolition and debris removal and professional/statutory fees.

The firm shall determine the Gross External Floor Area (GEFA) of the property, as defined in the RICS Property Measurement.

The rebuild cost is typically calculated by multiplying the gross external floor area (GEFA) of the building by a suitable rate for its re-construction.

If required by the policy, the figure shall include external works and services such as drainage, manholes, water supply, electricity supply, boundary structures and outbuildings.

The valuer shall consider the location of the property in considering the rebuilding rate, taking into account local variations in construction costs.

The valuer shall confirm whether the property is listed and/or has historical interest and shall take into account the additional costs which may be incurred during demolition and re-build caused by the need to use vernacular materials and/or skilled building techniques.

Similarly, the valuer shall determine whether the property is located within a conservation area which may affect reinstatement cost levels and timescales for rebuilding.

The valuer shall take into consideration any other restrictions to the site or the re-building of the property, such as if there is a river frontage.

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VAT

The rebuild of the property shall be treated as a new dwelling and therefore at present, the building work shall be zero rated. However, VAT shall be payable on fees which shall be considered in our valuation. 

The Report

 

The report shall be clear and concise, providing a summary of reinstatement cost.

 

The report shall provide an overview of the property which will form the basis on which the calculation has been made. The overview will contain a description of the subject property, along with the details of the inspection undertaken, recording any limitations or restrictions encountered.

 

The report shall not provide information such as calculations, rates and adjustments used and the like.

 

The report shall include a summary of the recommended base sum insured, usually rounded to assist in simplifying matters for insurers when calculating premiums.

 

The body of the report shall record the details of areas covered, such as demolition, site clearance and professional fees and the extent of the site covered shall be outlined.

 

Any exclusions such as (in the event the property is commercially leased) tenant fit-out, fixtures and furniture.

 

The report does not purport to give advice or make comment in respect of the condition of the property.

 

The declared value has no direct relationship to the market value of the property

 

The assessment shall be prepared in accordance with the instructions and shall not be used for any other purpose.

 

Cancelling this contract

You should seek advice on your obligations under The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (‘the Regulations’) and/or the Consumer Rights Act 2015 in accordance with section 2.6 of the current edition of the Home Survey Standard RICS professional statement. Upon signing the terms, you agree to waiver your 14 day cooling off cancellation rights to ensure the survey can proceed without delay. 

 

You are entitled to cancel this contract by giving notice to the Surveyors office at least 2 working days (this does not include weekends) before the date of the visit to the property. If you choose to cancel or amend the date of the survey after this time you will receive a refund of 50% of the fee minus any reasonable expenses.

 

Terms of Payment and Delivery of Service

You agree to pay our fee and any other charges agreed in writing.

 

The visit to the property will be made by the Surveyor once we have received the instruction form and payment has been made.  If you require any further information or wish to negotiate any variations on these standard terms, please contact us before you sign and return the instruction form.

We do not hold monies in a client account for the purpose of survey instructions although your money is protected by our cancellations policy as stated in these terms of engagement.

Once the visit has been made, the report will be subsequently compiled and sent via email. 

Reports are normally prepared, checked and sent to you electronically within 5 working days of the inspection taking place.

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The report is provided solely for the use of the Client and the Surveyor cannot accept responsibility if it is used, or relied upon, by anyone else. 


 

The contract is between House to Home Surveys Ltd and Client. None of our employees, Partners, Directors or consultants individually has a contract with you or owes you a duty of care or responsibility. You agree that you will not bring any claim against any such individuals personally in connection with our services.

 

No third-party liability is accepted, meaning no other parties other than the Client named within the report may rely upon its content. We do not hold any liability to any third party.

 

If you suffer loss or damage as a result of a breach of our contract or negligence, our liability shall be limited to a just and equitable proportion of your loss having regard to the extent of responsibility of any other party, whether that shortfall arises from an agreement between you and them, your difficulty in enforcement or any other cause.

 

We will make every effort to ensure that our service meets your requirements, but we recognise that occasionally things can go wrong. You should understand that in order to balance risk fairly between us, we have capped some of our legal liabilities in accordance with RICS recommendations. This means that if we were in breach of contract or a duty of care that we owe to you, the maximum compensation that we should be obliged to pay you would be as follows:

 

For a breach of contract or a duty of care relating to a valuation, up to 10% of our reinstatement valuation of the Property. For example, if we value the Property at £200,000, any damages you could recover from us would be limited to £20,000.

 

In some situations, we may offer a valuation without charging a fee. In these instances, where a fee has not been charged, we exclude liability altogether and your attention is specifically drawn to this statement.

Conflict of Interest

We are not aware that there is any conflict of interest with any known parties in this transaction. If you become aware of any conflict of interest, please notify us immediately.

Complaints Handling Procedure

We hope you have no reason to be dissatisfied with our service, however in the event that you are, a copy of our Complaints procedure is obtainable on written request from:

The Complaints Administrator, Unit 4C Gattinetts Business Park, Hadleigh Road, East Bergholt, CO7 6QT.

 

Note: These terms form part of the contract between you and the surveyor. This report is for use in the UK.