Calculating
the re-building cost of your building can cause a
great deal of confusion for policyholders. The actual
rebuilding cost differs from the selling cost ( don't
forget you already own the land) so only relates to
the actual amount required to rebuild the home from
the ground up with an allowance for things such as
Site clearance, reasonable architects and surveyors
fees.etc.
It is the responsibility of the policyholderto make
sure that the rebuilding cost is accurate and failure
toc do so can lead to an average
clause being applied to any claim.
If you have just purchased your
building,your lenders surveyor will usually recommend
a sum insured that they require you to effect cover
for and each year at renewal, your sum insured will be
increased by index
linking. However index linking is now
guarantee that your sum insured will stay adequate and
you are advised to keep an eye on it.
if you are no borrowing monewy on a
property or you have owned it for quite some time and
not had insurance, you have a number of options
to discover the rebuilding cost of the property.
- You could appoint a local
surveyor to viusit the premises an give you a sum
insured for insurance purposes. This may prrove to
be quite costly.
- You can
calculate the rebuilding cost once you are in
possession of the building measurements. The
Associationm of British Insurance publish a guide
to rebuilding costs and you can visit their
site by clicking on this link
