A communal policy only works when every owner is insured to the right reinstatement level. That figure dictates how much money is available if a tenement needs partially or fully rebuilt after fire, storm, or structural failure.
Because every flat depends on the same cover, the most proactive resident can still be left exposed if the block as a whole is under-insured. Taking time to confirm the numbers now avoids frantic scrambling if something goes wrong.
Reinstatement cost assessment 101
An RCA is a formal survey carried out by a qualified surveyor. It calculates how much it would cost to demolish, clear, and rebuild your tenement to modern standards.
- Includes professional fees, temporary accommodation, and debris removal
- Reflects construction inflation and specialist materials
- Forms the declared value on your insurance schedule
Why landlords + owner-occupiers should care
Without an up-to-date RCA, your insurer can reduce payouts using the “average clause”, leaving everyone to cover the shortfall personally.
Why accuracy matters
Over-insure and you end up with unnecessarily high premiums. Under-insure and any claim will be reduced proportionally. A £2m policy on a building that costs £2.4m to reinstate would only pay out £1.66m for a £2m loss.
Keep a clean paper trail:
- Store the latest RCA in a shared repository or factor portal
- Record when premiums change and why
- Share summary figures with all proprietors at least annually
How often to refresh
The Factors Code of Conduct suggests an RCA at least every five years. RICS guidance leans closer to three. In the years between surveys, factors typically uplift the declared value using construction inflation indices.
Rapid swings in material costs (think post-pandemic or energy shocks) are a good trigger to bring surveys forward.
Suggested cadence
- Commission a full RCA every 3–5 years
- Apply annual benchmarking using BCIS or insurer indices
- Review cover at your building AGM to log decisions
Benchmarking block insurance costs
Once your declared value is accurate, you can consider whether the premium is sensible. We often use a “10p rate” guideline: divide the reinstatement value by 1,000 to get a ballpark annual premium.
So if your RCA is £4m, the annual premium should be close to £4k, then divided among proprietors. Specialist factors and brokers can negotiate lower rates if claims history is clean and risk mitigation (fire alarms, leak detection, regular inspections) is documented.
Checklist before renewal
- Confirm latest RCA value
- Gather two broker quotes
- Share summary with owners
- Document any risk improvements
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