Building Insurance UK

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.

It is the responsibility of the policyholder to make sure that the rebuilding cost is accurate and failure to 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 money 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 visit the premises an give you a sum insured for insurance purposes. This may prove to be quite costly.
  • You can calculate the rebuilding cost once you are in possession of the building measurements.