Some insurers and comparison websites might be able to calculate the rebuild cost for you based on the details you give when applying for a quote. It can be broken down into two main factors.
The rebuild cost is the amount of money required to reconstruct your home from the foundations up if your property was damaged or destroyed in a fire or flood for example.
For insurance purposes rebuild cost. As stated above if your property is a unique or period property for example it is important that you consult with an appropriately qualified professional such as a charted quantity surveyor for advice. This cost is usually lower than your home s sale price or market value. The associated cost of labour.
How to use a rebuild calculator. Basing your policy on your home s rebuild cost will prevent you from over insuring and paying higher premiums than necessary. To his shock he found that while his home building insurance payout came to about 370 000 the quotes for rebuilding came to between 650 000 and 680 000.
The assessment of rebuilding costs for insurance purposes should not be referred to as a valuation. It includes the price of labour and materials. Alternatively you can work out the cost using a rebuild cost calculator which may have a limited number of attempts.
This is a separate matter. The rebuild cost is the amount it would cost to completely rebuild your home if it was destroyed beyond repair. Calculating the rebuild cost of your home is a necessary part of getting a home insurance quote.
If the rebuild cost increases without your buildings insurance increasing to match you could end up underinsured and left to cover the difference if anything was to happen. A survey typically costs from 450. Calculating the rebuild cost of your home is an essential part of applying for buildings insurance.
The cost of materials. The rebuild cost is usually lower than the market value because it doesn t include the cost of the land your home is built on. Therefore it s important to check that your buildings insurance covers anything that adds extra value to the rebuild cost of your home.
The rebuild value is the amount it would cost to rebuild your home from scratch if it was destroyed for example by fire flood or a storm. If you make any structural changes to your house such as a new extension or a loft conversion these are likely to affect the rebuild cost.