What is an RCA?
A Reinstatement Cost Assessment (RCA) estimates the cost of fully rebuilding your property if it were severely damaged. It considers demolition, debris removal, temporary accommodation, professional fees, and the full rebuild cost.
Why RCA accuracy is important
An accurate reinstatement cost keeps you properly insured. Over-insurance inflates premiums, while under-insurance could leave owners facing a shortfall when a claim is settled.
If insurance covers £2 million but a rebuild costs £2.3 million, any payout may be reduced proportionally, leaving a £600,000 gap for owners to fund.
How often should an RCA be done?
Construction costs shift over time. The Property Factor Code of Conduct recommends an RCA every five years, while RICS suggests every three. Interim years usually index the cost using official inflation data.
More information
Read the Royal Institution of Chartered Surveyors (RICS) guidance for detailed methodology and update cycles.