The short answer
As a general guide the reinstatement figure should be reviewed at least every few years, and reassessed sooner after extension, refurbishment, alteration or significant construction cost movement. The exact cycle depends on the building and policy requirements. We agree a review cycle so the declared value does not silently drift out of date between full assessments.
Combine periodic professional reassessment with earlier review when the building or available evidence changes.
Where further evidence may be needed
What is a declared value?
The declared value is the policyholder's assessment of the full reinstatement cost at the start of the policy period, on which the sum insured is based. It is not always the same as the sum insured, which may include an inflation uplift. An RCA gives an evidenced basis for the declared value so it can be defended at renewal and in the event of a claim.
Turning the answer into a next step
Can under-insurance affect a claim?
Yes. If the sum insured is materially below the true reinstatement cost, insurers can apply an "average" clause and reduce the claim payment proportionately, even for a partial loss. For a block this can leave leaseholders significantly exposed. A current, evidenced RCA is the most effective protection against under-insurance and average.
What to do next
Review the figure at the building and policy-specific cycle.
Reassess sooner after extension, refurbishment or alteration.
Obtain a fresh professional assessment periodically.
Use index-linking only between full assessments.
Related services
Sources and standards
Related questions
How is the sum insured kept up to date between full assessments?
Between full professional assessments the reinstatement figure is usually kept current through index-linking, where the insurer adjusts the sum insured in line with a construction cost index at each renewal. Index-linking helps offset general building cost inflation, but it does not capture changes to the building itself, such as an extension, refurbishment or altered specification. RICS good practice is therefore to obtain a fresh professional assessment periodically, with a figure commonly cited around every three years, and to rely on index-linking only in the years between full reviews.
Do managing agents need regular RCA updates?
Yes. For managed blocks, keeping the RCA current is part of prudent block insurance management and helps demonstrate to leaseholders that the sum insured is properly evidenced. We can work to a portfolio review cycle so renewals are supported with up-to-date figures rather than rolled-forward estimates.
Will the report explain any unusual cost drivers?
Yes. Where the building has abnormal features, listed or heritage constraints, difficult access or unusual construction that may affect rebuild cost, those factors are identified and explained in the report, along with the assumptions and exclusions, so the figure is transparent rather than a single unexplained number.
Related guidance
Local Level 3 building survey guides
Savas Bulduk
BSc (Hons) MRICS, Director & Chartered Building Surveyor.
Writes on Building surveying, Fire safety and facade, External wall systems, Technical due diligence, Contract administration. See the full team profile.
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