Insurance valuation in Uganda: getting the sum insured right
A reinstatement valuation: what it would cost to rebuild.
The sum insured on a building policy should be what it would cost to rebuild it, not what it would sell for. The two can be very different, because market value includes the land and rebuilding cost doesn't.
A reinstatement valuation works out that rebuilding cost: clearing the site, professional fees and putting the building back as it was, at today's prices.
How we handle it
- 1We inspect the buildings and note how they're built.
- 2We work out the current cost of rebuilding them.
- 3You get a report your insurer can rely on.
Worth knowing
- Under-insured means a smaller payout
- Many policies reduce a claim in proportion when the sum insured is too low. A realistic figure protects the whole payout, not just part of it.
- Over-insured means wasted premiums
- Insuring for more than the rebuilding cost raises premiums without raising what you can claim.
- Revisit it as costs change
- Building costs move over time, and extensions change what needs rebuilding. Review the figure when you renew the policy.
This guide explains how the process generally works. Every piece of land is different, so talk to us about yours before you act on it. More on our property, plant & equipment valuation work.
Tell us about your land
What kind of property is it, and where? Send it on WhatsApp or by email, or call the office Monday to Friday, 7am to 6pm.
Common questions
Why value a building for insurance?
Insurers pay out against the sum insured. A reinstatement valuation tells you what it would really cost to rebuild, so you are not paying premiums on too much cover or left short after a loss.
What do I need for a valuation?
A copy of the land title, the owner's contact, directions to the property, and approved building plans if there are buildings. If a bank asked for the valuation, bring its instruction letter too.