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this is part 2 of insurance valuation management
for strata and commercial building so earlier on we looked at
the insurance valuation we'll go over that again now
what is an insurance valuation, that's fine
we've gone through the critical elements
of what the body corporate or the owners corporation needs
to do; we looked at the case study and now what we'll do now we'll go into one of
the sample
the reports we'll go through a report to see what that looks like
okay, so this is a standard building
1, 2, 3, 4, 5, 6, 7 levels
so we'll have a look and just see what what's in here
so these are some
some of the items that are in a insurance valuation
so 3 basic sections
where is your insurance valuation summary
basically your insurance valuation report
and also your report notice inside
photographs
so this is a sample
a sample report which is a building that consists of
15 units with car parking areas and the replacement value
for this building is $4.6 million so
we'll have a look from the basic construction cost to the
the replacement cost where there's gonna be a a big difference between the two
okay
so the...where we're looking at in the insurance valuation is looking at the
critical aspects and what we need to do so
the first thing we need to do is determine the replacement value of the building that's
that's fine so make sure it complies with all the
the regulations and the bylaws since the date of of construction so
so maybe
the updating of the 5 panels, all
the different regulations for that sort of building at the same time, okay?
loss of rent and emergency accomodations
so this is where we're talking about in the event of a fire is there enough
money to look after
104-week period which is 2 years
okay
so the next thing we look at is current trends depends on the
when you do a review of a insurance valution once every five years
then the insurance valuation keeps up with
yourl building rates and the changes in legislation for either
say removal debris and getting rid of the the
the stuff from site as well as the normal construction site of a building
so this is
one of the other items that we need to look at so this is when we're talking about a periodic
review so
once every five years we're supposed to do a review of the
insurance cover to make sure that it's up to date with everything
okay, so we're looking at the elements that we use in calculating
the building replacement value so the present building costs
we allow for the cost of installationl while
the tenders and everything come together, the professional fees
removal of debris and then the cost escalation
from when the initial planning went ahead towards
the final completion that or the building so
as we saw in this building here
we had 26 months from going from stage 1
to its final stage so
there's a fair bit of a gap in between here so the original quotes you got to
replace the building back here
is gonna be different by the time you get to this stage specially after, you konw
you got nearly 2 years that have gone past
okay, so what I might do I'll stay on that
section from there
no wait I'll go through here, okay so if we look
at this initial section for here so we're saying
total bill cost is $3.2 million
but by the time you go through your
cost escalation you got your fees
removal of debris, that's where it goes up to $4.6 so you can see
3.2
there's about $1.2 million extra from
your normal bill cost to just to rebuild the building
as opposed to all this extra
cost periods in here so we'll look at that in the next section 'cause we've run out of time on this one
okay?