When you take out a mortgage you are usually required to have buildings insurance to cover the cost of rebuilding your house should anything happen to it. It’s sensible for any homeowner to have it, and to make sure it is for an adequate amount.
Is your buildings insurance figure up-to-date?
If it’s too low, then you would have to cover the difference in the amount you are insured for and the actual rebuild costs yourself. For example we’ve seen a four bedroom house in Barford with an index linked insurance policy of £325 000 that was under insured by £50 000. That would be a lot of extra money to find, on top of all the stress of having your house rebuilt! If the figure is too high, then you’re probably paying too much for your insurance premiums.
Rebuilding costs consider the demolition of your old property, the price of materials and time in building your house again on the land you own. The cost can be affected by any structural changes you have made, such as a garage conversion or new conservatory – so it’s important to be re-assessed if you’ve done this. Listed buildings or unusual properties that require specialist skills are particularly important to have regularly re-valued.
The rebuild cost doesn’t take into account things that affect property prices such as location, supply and demand or school catchment area. This means that the final figure is normally lower than the market value of your home.
Calculating your buildings insurance valuation
We recommend that you have your rebuild costs valued every five years to make sure you are covered and that you are paying the right amount in insurance premiums.
Email us to arrange your competitively priced insurance valuation.