Insurance, replacement cost and year built

[ashes]

Hi,

I am looking at getting Landlord Insurance for a rental property in Brisbane.

I was wondering how to people determine the building replacement cost, to insure for? Is there a professional who can give an estimate of replacement cost?

Also this house was built before Brisbane Council was created. So there are hardly any records. How do you work out the year the house was built?
I suspect it is probably about 95 years old, which is very close to the 100 year limit in some of the insurance polices.
What would happen if the insurance company decided the house was more then 100 years old?

Ashes

 

[DaveM]

When did you buy it? The valuer would have put a rebuild cost for the mortgage.

 

[ashes]

It was purchased recently.
The bank did not provide a copy of the valuer report to me.

 

[DaveM]

They would have provided the required insured value and bank to be noted as an interested party as a requirement for settlement?

 

[ashes]

I don't remember anything like that. They just wanted a copy of the Insurance certificate.


The bank is only ever yes or no, they never give an opinion on what is appropriate.

 

[DaveM]

Strange, every loan I have had the lender has required a CoC with a minimum insured value per the val, and the lender to be noted as an interested party.

Maybe ask your lender/broker for the insured value from the val? How did you determine what value to insure for on your CoC?

 

[marks]

Thanks to the privacy act, if the bank holds any information on you, you can request a copy.

Before the privacy act, they never released Vals details. You had to find a friendly bank manager to help out.
Now, I see two responses. One, which I think you got, was "we don't release that", in which you need to remind them of the privacy act. The other is freely give everything in the report.
But I don't expect full reports, I'm happy with summary info or details over the phone to work with.

Cheers

 

[ashes]

How did you determine what value to insure for on your CoC?

I guessed. Which is the reason for this post.

So is a Valuer about to give an estimate of building replacement cost? or can they just do market value.

I have seen one valuation report which was 'market value' - 'unimproved land value' = 'building value'. But that was way to low to be the replacement cost. But maybe that is all the bank cared about. Is the insurance + sale of land enough to pay back the loan.

What about the people who do depreciation reports? Can the give building replacement costs?