Book value and last year's policy sum are not replacement cost. When buildings, plant, and infrastructure need to be reinstated after a loss, the gap between declared values and actual rebuild costs can be severe.
The usual causes are quiet: asset schedules drift, construction costs rise, and policy sums stay static. Finance depreciation and insurance replacement cost measure different things. Professional insurance valuations align cover with reinstatement — not an outdated spreadsheet.
Lenders, insurers, and committees increasingly want defensible valuations checked against what is on site. That often starts with an insurance inspection and an accurate asset register, especially for Brisbane body corporate and commercial portfolios.
Boards can then approve sums insured with evidence behind the decision. Request a quote or read our renewal checklist if a policy date is approaching.