House valuation costs tipped to rise

By ANNE GIBSON

The cost of getting a house valued is about to rise because of increasing insurance costs for valuers, says a real estate leader.

Property Institute chief executive Conor English said insurance companies were charging valuers more for professional indemnity insurance. He blamed this on the insurance companies' losses suffered on the international share market.

But Insurance Council chief executive Chris Ryan said falling sharemarket prices were only one factor driving up premiums.

He said many other professional groups such as accountants were also facing rises.

Ryan said commercial premiums had been rising for three years. Valuers could shop around for the best price but they needed also to consider the quality of their cover. Many valuers accepted that premiums had to rise and were passing this on to their clients.

Ryan said premiums for accountants were doubling in some cases. English predicted a house valuation fee of $400 would rise to around $500 because valuers would need to recoup the increased premiums.

He cited one valuer who was paying $5000 for indemnity insurance two years ago who was now being charged $15,000 but with an increase excess on the policy and more exclusions.

But English warned valuers to protect themselves.

"If property professionals are to continue to protect the interests of their clients and maintain viable practices, they must continue to maintain adequate indemnity insurance cover."