Sinking Funds
07
Sinking Funds and Insurance Replacement
It is the responsibility of the professional Body Corporate Manager to ensure that their clients buildings meet all of the requirements of the Body Corporate and Community Management Act 1997 as well as other risk management services.
At Beacon Consulting we specialise in the provision of Sinking Fund Analysis, Insurance Replacement Cost Estimates and Division 10 maintenance reports and prepare reports for over 500 body corporates each year.
A professionally prepared sinking fund provides owners with an independent estimate of the money to set aside each year for non-recurrent common property expenditure by identifying various sinking fund items, their anticipated life and cost.
It is imperative that all buildings be adequately insured in the event of their partial or total loss or destruction. Specialist building replacement cost advice is highly recommended to ensure all aspects of building construction have been taken into account in determining a building's replacement cost. Beacon Consulting provide specialist advice to assist you to determine the replacement cost of residential, commercial, and industrial buildings, together with special use projects.
Beacon Consulting will provide the documentation to ensure the appropriate level of cover to protect property. This will also ensure clients are paying an insurance premium relative to the level of insurance necessary and not paying inflated prices. The information also enables the relevant insurer to expedite payments should a claim be made against a policy. Updating insurance cover annually is advisable to cover the impact of inflation on the replacement cost of essential capital cost items.
In the event that a claim is necessary a current valuation will ensure clients receive the full cost of replacing assets as well as other hidden costs such as demolition costs, consultants fees, costs for authorities approvals (councils etc). If you experience damage to a property, Beacon Consulting can also prepare an assessment of the damage and assist you in the submission of claims and negotiations with the insurance company assessors.#