New form provides assurance for home owners

QUANTITY SURVEYORS RESPOND TO HOMEOWNER DEMAND

Media release
27 August

New form provides assurance for home owners

The New Zealand Institute of Quantity Surveyors has launched a residential ‘reinstatement estimate’ form in response to high demand from homeowners seeking accurate rebuild costs by construction cost specialists in the face of new house insurance policies.

Homeowners are now required to provide ‘reinstatement valuations’ on their residential dwellings for the new ‘capped-sum’ house insurance replacement policies – the maximum the insurer will pay if the home needs to be repaired or rebuilt.

NZIQS Chief Executive John Granville says the form, endorsed by the New Zealand Insurance Council, is designed to provide homeowners with an assurance of best-practice in the calculation of a correct reinstatement cost estimate on their residence. While all NZIQS-qualified quantity surveyors are construction cost specialists, the form is sanctioned for signature only by an NZIQS-Registered Quantity Surveyor.

“We know homeowners want to use qualified quantity surveyors and we know they need to be able to identify those who are most suitably qualified to carry out the work accurately,” says Mr Granville. “Our members identified as ANZIQS, MNZIQS and FNZIQS are suitably qualified although the Form is approved for ‘Best Practice’ purposes for those members with added RegQS award.”

Home owners can also use online calculators provided by some insurance companies to work out reinstatement values. However, Mr Granville says it is not a simple process and does not cater for many homes with special features. An accurate estimate requires knowledge of building materials, architectural, structural, special foundation and design costs through to driveways and landscaping. As well as quantity surveyors other construction and valuation professionals can assist the homeowner.

“Qualified quantity surveyors are the right people to accurately assess house replacement costs. For peace of mind, homeowners with significant concerns about their house and with replacement offers should consider using this new service.” Mr Granville says homeowners also need to be aware that there is a shortage of experienced and qualified quantity surveyors in New Zealand and a limited number who do residential work.

“Our intention is solely to allow homeowners to identify best-practice in the profession.” For peace of mind, home owners should check whether their specialist is covered by professional indemnity insurance.

Homeowners can access the residential ‘reinstatement estimate for insurance purposes’ form on the NZIQS website as well as a list of Registered Quantity Surveyors available to undertake residential work at www.nziqs.co.nz .

ENDS

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