Blog: When a rebuild assessment comes back lower

A lower rebuild assessment might be welcomed, but also prompt concerns over whether part of a building has been overlooked. John Pirone, business development manager at RebuildCostASSESSMENT.com, asserts this is where an honest conversation between the assessment provider, broker and insurer can help.

If you were buying a carpet, you might allow a little extra to avoid coming up short. But if a fitter told you that you needed less than you thought, you’d probably want to see the measurements before changing the order.

I think a lower rebuild assessment can prompt a similar reaction. A client might welcome it, then wonder whether part of the building has been overlooked.

I can understand that hesitation. When someone has relied on the same building’s figure for years, a lower estimate deserves more explanation than “here’s your new number”.

If an inflated figure has been affecting the premium, a review may identify an avoidable cost.

At RebuildCostASSESSMENT.com, we’ve been talking more about overinsurance alongside underinsurance. Our 2026 Property Insurance Infographic found that 23% of the commercial properties assessed were overinsured. For me, that finding makes the conversation about the figure just as important as the figure itself.

I’d start with what the report actually says. Its date, property description and assumptions help explain what has been assessed. Talking those through gives the client a chance to flag something they don’t recognise or a change that needs investigating.

A lower result doesn’t necessarily mean construction costs have fallen. The assessment may use different information or include different costs from the existing policy figure. We need to understand those differences before drawing conclusions about the previous amount.

Then there’s the policy itself. With day-one cover, the declared value is based on rebuilding costs at the policy’s start. The sum insured also allows for inflation over the policy period and the time needed for rebuilding. A comparison needs to account for what each includes.

Conversation

That’s where the conversation between the assessment provider, broker and insurer helps. We can explain our estimate and its limitations. The broker can talk the client through the recommendation, while the insurer can clarify how the assessed figure applies to the policy.

If an inflated figure has been affecting the premium, a review may identify an avoidable cost. Any effect on the price needs checking with the insurer.

A short file note linking the assessment, any clarifications and the recommendation is useful too. If a colleague picks up the file later, they can follow the reasoning.

Coming back to that carpet, “less” is easier to accept when someone explains the measurements. A client deserves the same care with their buildings insurance. Whether the assessment comes back higher or lower, the aim is to help them understand the figure they’re being asked to rely on.

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