Hello, I'm just about to pay the insurance renewal on me old mum's house and the sum insured for the building has caught my eye, it's way below the market value of the house, possibly only half what the house might sell for at the mo.
I'm aware that house prices are silly right now but am I right in thinking this is rather low? Do other users have a buildings insurance about right for the market value of their house, or is this something I should change?
cheers,
Andy.
It has nothing to do with the market value of the house but on rebuilding costs. Considering that you already own the land, in the rare event of a total rebuild, even taking into account architects fees, site clearance the cost of rebuilding would be a fraction of market value. I did the exercise a few years ago using building industry stats and I was amazed how much I was being overcharged by my insurence company. I revalued and cut my premium in half. You should also note that the insurance company would put out the rebuilding to tender and the lowest bidder gets the job, you don't get the money. Any surveyors out them care to confirm that that is still valid today.
One insurers for rebuild cost not market value.
One INSURES for rebuild cost not market value.
insured amount should be above market value.
NT
Use the ABI rebuilding calculator at (watch for line wrap):
In message , N. Thornton writes
did you really mean that?
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