Accurate insurance valuations are one of those things businesses know they should have in place, and one of the first things that gets deferred. With construction costs volatile, asset values shifting, and inflation unpredictable, the gap between what a property is insured for and what it would actually cost to reinstate can grow quickly and quietly.
When a claim arises, that gap becomes a serious problem. We provide RICS-approved insurance valuations for commercial property, plant and machinery, and business assets, giving you, your insurer, and any loss adjuster a robust, defensible figure that reflects true replacement cost.
Ready to arrange an insurance valuation? Get in touch using the form further down the page. Or, continue reading to learn more about this service.
What can be valued for insurance purposes?
Insurance valuations are relevant across a wide range of commercial property types and business assets. We provide insurance valuations for:
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Commercial property |
Plant, machinery, and business assets |
Other assets |
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Office buildings and office parks |
Manufacturing and production equipment |
Fixtures and fittings integral to a building's operation |
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Industrial units, warehouses, and distribution centres |
Engineering and processing plant |
Specialist or bespoke equipment |
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Retail premises and shopping centres |
Agricultural machinery |
Imported machinery where replacement sourcing is complex |
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Leisure facilities and hospitality venues |
Computer-aided and robotic machinery |
Assets held as part of a business portfolio or investment fund |
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Mixed-use developments |
Shop fittings and interior fit-outs |
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Development sites and partially completed buildings |
Heating, ventilation, and air conditioning systems |
If you are unsure whether your property or assets fall within scope, our team is happy to advise before any instruction is confirmed. Contact us now for tailored advice.
What is underinsurance, and why does it matter?
Underinsurance occurs when a property or asset is insured for less than its actual reinstatement or replacement value. It is more common than most businesses realise.
Research from late 2025 found that over 40% of commercial properties in the UK are currently underinsured, with the average shortfall running to 43% against the correct rebuild value. Where that gap exists, businesses bear the difference themselves.
When a claim is made on an underinsured policy, insurers typically respond in one of two ways:
- Policy avoidance – The insurer voids the policy and refunds premiums paid, rather than settling the claim.
- Average clause – the insurer reduces the claim payment in proportion to the underinsurance. If a building is insured at 70% of its correct reinstatement value, only 70% of the claim will be paid
Neither outcome is acceptable when the claim involves a critical business asset or a property central to your operations. An accurate, up-to-date insurance valuation removes that risk.
What does an insurance valuation cover?
An insurance valuation establishes the correct sum insured for your property or assets; not what they are worth on the open market, but what it would cost to repair, reinstate, or replace them.
We provide insurance valuations across three recognised methodologies:
Reinstatement
The cost to repair, reconstruct, or renew an asset to a condition equal to (but not better than) its condition when new. This is the most commonly required basis for commercial property and fixed plant, and the figure most insurers need to set an accurate sum insured.
Indemnity
The sum required to replace an asset with an identical or substantially similar item in a condition comparable to the existing asset, accounting for age and wear. This basis is typically used for older assets or plant and machinery where like-for-like replacement is the appropriate measure.
Market value
The recoverable value of an asset where it is surplus to requirements or no longer in operational use. This basis applies where an asset would be sold rather than replaced following a loss.
What is the difference between reinstatement cost and market value?
Market value reflects what a buyer would pay for a property in the open market. Reinstatement cost reflects what it would actually cost to demolish the existing structure, clear the site, and rebuild to an equivalent standard (including professional fees, statutory costs, and the price of materials and labour at the time of reinstatement).
For most commercial properties, reinstatement cost is significantly higher than market value. A property in a location with subdued demand might have a relatively low market value, but a high reinstatement cost if it is a substantial or complex structure. Insuring on the basis of market value in those circumstances would leave a business severely exposed.
RICS guidance requires insurance valuations for commercial property to be carried out on a reinstatement cost basis unless there is a specific reason to use an alternative methodology.
Who needs an insurance valuation?
Any business or property owner with commercial property or significant business assets should have a current insurance valuation in place. However, it is particularly important where:
- Existing valuations are three or more years old
- Construction costs or asset values have moved significantly since the last valuation
- The business has invested in new plant, machinery, or fit-out
- The property has been extended, refurbished, or significantly altered
- Assets include specialist, imported, or bespoke machinery
- The business has undergone restructuring, expansion, or downsizing
- A policy is due for renewal and accurate reinstatement figures are required
Assets should be revalued every three to five years as a minimum. While insurers can index-link the sum insured between valuations, construction and replacement costs can move more sharply than index adjustments allow, particularly in periods of high inflation or supply chain disruption.
Why choose BTG Eddisons for insurance valuations?
Our valuers are fully chartered and operate to the RICS Valuation – Global Standards (Red Book). That means the valuations we produce are prepared to the professional standard that insurers, loss adjusters, and lenders expect, and will stand up to scrutiny if a claim arises.
We have property, plant, and machinery valuers located across our 35 UK offices, covering commercial property of all types and a wide range of business assets. Our reports are thorough, clearly reasoned, and delivered efficiently.
Our insurance team has a proven track record of success and our positive reviews speak volumes about our commitment to first-class support for our clients.
Protect your position with a RICS-approved insurance valuation.
We cover commercial property and business assets across the UK. Get in touch by completing the form below, and our friendly team will contact you to discuss your specific requirements.
Frequently asked questions about insurance valuations
How often should I have an insurance valuation carried out?
As a general guide, insurance valuations should be updated every three to five years. However, if construction costs have risen significantly, your property has been altered or extended, or your asset base has changed materially, you should consider commissioning one sooner.
