SUMMARY
In order to ensure that the property owner is adequately insured , a proper replacement cost valuation should be prepared by a professional quantity surveyor . Such valuation should account for all aspects of reinstatement including , amongst others , the construction costs , provision for demolitions , professional fees , local authority costs , sundries and building cost fluctuations up to the completion of the reinstatement . Although Value Added Tax ( VAT ) is available as an input credit tax in the construction process , the replacement cost should include VAT . Depending on the extent of information available , estimates applying different methodologies can be used .
The insurance industry should work closely with the quantity surveying profession to better inform their clients as
to how insurance claims are assessed in the event of partial damage or total destruction to their buildings and related infrastructure .
Dr . Deen Letchmiah President of the South African Council for the Quantity Surveying Profession ( SACQSP )
SA Real Estate Investor Magazine SEPTEMBER 2022 107