One of the most overlooked aspects of property management is the accuracy of insurance coverage. Many property owners insure their assets based on market value or the purchase price, which can be a fatal mistake. Insurance valuations should be based on the Reinstatement Cost—the cost to completely rebuild or replace the asset in the event of total destruction. If your property is under-insured, the “average clause” in your policy may be applied, meaning you will only be compensated for a fraction of your loss.

AVID Property Limited provides specialized reinstatement value assessments for insurance placement and review. We calculate the cost of demolition, debris removal, professional fees (architects, engineers), and current construction costs to arrive at an accurate sum insured. This is particularly important for industrial properties and specialized assets like plant and machinery, where replacement costs can fluctuate wildly due to exchange rates and inflation.

Regular re-valuation is essential. Construction costs in Kenya have been rising steadily, and a valuation done three years ago may no longer be adequate today. We recommend that our clients, including insurance companies and private owners, review their portfolio valuations annually or bi-annually. This ensures that your coverage keeps pace with inflation and that you are paying the correct premium—neither too much for over-insurance nor too little for under-insurance.

Our insurance valuation services extend to specialized assets such as marine vessels and aircraft, where the replacement dynamics are even more complex. By engaging AVID for your insurance valuations, you are transferring the risk of estimation to professionals. We provide you with a certified report that stands up to scrutiny by loss adjusters, ensuring that your claims process is smooth and that your assets are fully protected against unforeseen disasters.