If you want to make sure you get the right home insurance deal, getting an accurate rebuild cost for your property is crucial.
The rebuild cost specifies how much it would cost to rebuild your home, including materials and labour, if it was totally destroyed by an incident such as fire, subsidence, freak weather or earthquake. This cost does not include the land the property is built on and should not be confused with the market value of the property, which will usually be much higher. In basic terms, it covers the cost of reinstating the property to its original condition, which also includes clearing the site, any surveyor and architect costs, and building regulation compliance.
Your home's rebuild cost can normally be found on the property's survey/homebuyer's report. If not, there are two ways you can calculate the rebuild cost of your home:
• Get an estimated rebuild cost using a rebuild calculator (check out the BCIS website)
• Appoint a chartered surveyor who can provide a full, accurate Rebuilding Cost Assessment
If your house is not of standard construction, is a flat or maisonette, has cellars or more than 2 floors, has unusual design features or is a listed building then you may be unable to get an estimated rebuild cost using an online calculator – in these cases refer to your deeds, mortgage offer, or a recent survey if you have them. If not, then you might consider appointing a surveyor.
Doing it yourself
If you’re working out the rebuild cost yourself, you’ll need to work out the floor area for all the levels of your property. For the ground floor, measure the length and width of the exterior walls and multiply the two numbers. Then, if the upper floor is identical to the ground floor, simply double it. If the floor areas are different, calculate each separately and add the figures for each floor together.
Extending your home
It’s really important to recalculate the rebuild cost if you’re planning to extend or have already extended your home. This is because the improvements are likely to increase the rebuild cost and you may end up being under-insured. Always notify your insurance provider of any improvements that could affect the value, size and insurance premium for your home and check that the rebuild amount is not affected.
Check your rebuild cost often
Do regularly check that your buildings insurance still covers the rebuild cost. Many insurance companies adjust premiums automatically (index-linking) but when it’s time to renew and compare home insurance quotes it’s always worth recalculating for your own peace of mind.
For more information on how the rebuild cost is calculated, visit the Association of British Insurers.
Read our home insurance articles and guides for more great topics or get a home insurance quote.