What is a rebuild cost assessment?
Rebuild cost is not the same as market value. It focuses solely on the cost of rebuilding, which can be influenced by factors such as the type of construction, location, accessibility, and any specialist features your building may have. Additionally, changes in building codes, inflation, and supply chain fluctuations can all impact the final figure.
Since the pandemic, shortages of building materials and skilled workers have caused rebuild costs to rise sharply. Building material costs in Ireland increased by around 30–36% between 2020 and 2023, driven by sharp rises in timber, concrete and energy-intensive materials.3 Labour shortages have added further pressure, making projects more expensive and slower. This means relying on old rebuild estimates can leave your insurance cover too low, so regular, up-to-date assessments are essential.
The below checklist gives an understanding as to why an accurate assessment matters. It outlines the key components that affect rebuild costs and provides practical steps to calculate a reliable estimate. By following these principles, you can ensure your insurance coverage is aligned with real-world rebuilding expenses, giving you peace of mind and financial security should the unexpected happen.
Comprehensive checklist for rebuild costs and risk assessments
| Factor | Description | Action |
|---|---|---|
| Building size and layout | Total floor area and structural complexity | Measure accurately and confirm plans |
| Construction type | Materials used (e.g. steel, concrete, timber) | Identify primary and secondary materials |
| Location and accessibility | Impact on labour and transport costs | Assess site access and local conditions |
| Specialist features | Unique elements (e.g. lifts, HVAC systems, bespoke finishes) | List all specialist installations |
| Compliance and regulations | Current building codes and safety standards | Check for updates in local regulations |
| Inflation and market trends | Changes in material and labour costs over time | Apply latest cost data and indices |
| Professional fees | Architects, surveyors, and project management costs | Include estimated professional charges |
| Demolition and clearance | Removing debris and preparing site for rebuild | Factor in disposal and clearance costs |
| Fire risk | Fire safety measures and vulnerability | Review fire suppression systems |
| Flood risk | Exposure to flooding or water damage | Check flood zone maps and mitigation steps |
| Structural integrity | Condition of foundations and load-bearing elements | Conduct structural surveys |
| Security risk | Vulnerability to theft or vandalism | Assess security systems and access control |
| Environmental hazards | Risks from asbestos, chemicals, or hazardous materials | Plan for safe removal and compliance |
By reviewing these factors systematically, businesses can ensure their insurance coverage reflects true rebuilding costs and addresses potential vulnerabilities effectively.
How NFP can help
Working closely with us as your insurance broker can help ensure your rebuild cost assessment is accurate and up to date. Brokers have the expertise to review your property, understand its unique features, and identify factors that affect rebuilding costs, such as specialist materials, compliance requirements, or environmental risks.
Our specialists can also advise on adjusting your cover as market conditions change, including rising material and labour costs. With NFP as your broker, we can advise on appropriate levels of cover, in order to reduce the risk of underinsurance, and gain peace of mind that your business assets are properly protected.