‘How much would it cost to rebuild your property?’ is a common question when completing an insurance application. Unfortunately, it is also commonly a question that people do not know the answer to. Luckily there are a number of methods that you can use to calculate this, ensuring both that your house is adequately covered and that you are not paying over the odds for your home insurance.
Why is it important?
As touched upon above, making sure that you have as accurate a figure as possible for the rebuild cost of your property is important for a number of key reasons. This starts with the importance of not underinsuring your property, the reason for which is obvious. In the event of catastrophic damage to your property that results in the need for it to be completely rebuilt, if your insurance value isn’t high enough to cover this then you will be left to foot a hefty bill yourself. Although insuring for a lower value may seem like a good idea at the time with the aim of saving a few pounds, it is never worth the risk.
Equally, if you choose to vastly over-insure your property, you will end up spending far more money than is necessary. Your monthly or annual payments will be much higher than if you had simply insured for the required figure. Plus, the insurance company will only ever pay out the amount your home costs to rebuild, even if you are covered for more than this. For this reason, overpaying for your insurance cannot be seen as a form of savings account where you can later reclaim the difference!
How much would it cost to rebuild my house?
There are a number of methods that can be used to obtain the correct rebuild value of your property. The most accurate of these is obtaining the help of a registered surveyor who will be able to carry out a full survey of your property. There is however some cost associated with this option, with the average survey setting you back around £250. Despite this, lots of people choose this option because of the peace of mind that it provides in relation to your rebuild costs. Taking away any element of guesswork means you can be confident that you are adequately covered.
Having some form of written confirmation is certainly the most reliable way of knowing your property rebuild cost. However, it is not always necessary to commission a new survey to obtain this. If you purchased your home using a mortgage then it is likely that your mortgage survey report will contain this information. It is also possible that you property deeds will be able to tell you. It is certainly worth consulting any documentation you own which relates to the property before consulting any more expensive options.
If neither of these options are open to you then there are still ways that you can work out your property rebuild cost. One of these is the use of the BCIS rebuild cost calculator, which is what we use via our online insurance platform to help to calculate the rebuild cost. This tool can take your basic property information and automatically calculate an approximate sum for you.
There are therefore a number of options available to help you work out exactly what rebuild value you should be entering for your property and at Source our team of property insurance experts are on hand to answer any queries you may have.