Strata Insurance Valuations

PWE Property Consultants & Valuers prepares insurance valuations for strata and survey-strata schemes across the Perth metropolitan area. We act for strata companies, councils of owners and strata managers, and every report is prepared by a licensed valuer with over 20 years’ experience.

Why a strata company needs an insurance valuation

Section 97 of the Strata Titles Act 1985 (WA) requires a strata company to make sure the insurable assets of the scheme are insured to replacement value against fire, storm and tempest, lightning, explosion and earthquake. An insurance valuation is how a strata company knows what that replacement value is.

If the sum insured is too low, the owners are left to fund the shortfall after a loss. If it is too high, the scheme pays more premium than it needs to every year.

What an insurance valuation covers

An insurance valuation is not a market valuation. It ignores the value of the land and estimates what it would cost to reinstate the buildings and other insured improvements. Our assessment allows for:

• the cost of rebuilding to the same size and standard under current building requirements
• demolition and removal of debris
• professional fees, such as architects, engineers and surveyors
• common property improvements, including car parks, fencing, lifts and shared services
• cost increases over the period of insurance and the time it would take to rebuild

Who is responsible for insuring what?

In a strata scheme, the strata company insures the buildings. In a survey-strata scheme, each owner generally insures the buildings on their own lot and the strata company insures the common property. The Act has special provisions for some small schemes. Your strata manager can confirm what applies to yours.

Why choose PWE?

PWE has worked with Perth strata schemes for decades, including certifying unit entitlements, so we understand strata plans, common property and how schemes are put together. Our three directors are all licensed valuers, each with more than 20 years’ experience, and we value residential, commercial, industrial and mixed-use schemes.

Frequently asked questions

Is the insurance value the same as what the units are worth?

No. Market value includes the land and reflects what buyers will pay. The insurance value is the cost of rebuilding, and it can be higher or lower than the combined market value of the lots.

How often should the valuation be updated?

Building costs change from year to year, so most schemes update their valuation regularly, and sooner after major works or a sharp movement in construction costs. Check your insurer’s requirements and your scheme’s by-laws.

Does the valuation cover the contents of each unit?

No. It covers the buildings and common property the strata company is responsible for insuring. Owners arrange their own cover for contents.

What do you need from us?

The strata plan, the current certificate of insurance, details of any recent building works, and access to the common areas and a sample of the lots.

Which areas do you cover?

We act for schemes throughout the Perth metropolitan area.

Talk to a valuer

Call (08) 9228 9955 or send us a message to discuss an insurance valuation for your scheme.

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