A re-instatement insurance valuation is an estimation of the cost of rebuilding a property (home or building) in the event of total destruction. An accurate assessment will eliminate the risks associated with under insurance and will avoid payment of excessive premiums for over insurance.
If your property is undervalued, you may not receive the full cost of reinstatement. Even if your policy is index linked, it is wise to have your insurance valuation periodically re-calculated to ensure you have sufficient cover.
