What’s the rebuild cost of my home?

When it comes to home insurance, correctly working out the rebuild cost of your property will help ensure you buy the right amount of cover. But how do you come up with a figure? 

The rebuild cost of your home is the amount it costs in labour and materials to reconstruct it from the ground up if it was destroyed by fire, flood or a storm.

There is a difference between the rebuild cost and market value of your home. The market value relates to how much someone may pay to purchase your property. The Market value is likely to be significantly higher than the rebuild cost because it also takes into account factors such as the value of the land the property sits on and the desirability of the location.

If your home is made of specialist materials, such as thatch or even timber and concrete, it could be more expensive to rebuild than a typical bricks and mortar home. The same applies for a listed building, to check whether you live in a listed building you need to check with the English Heritage, Historic Sctoland, Cadw or the Northern Ireland Environment Agency.

The type of property is also important. If you live in a block of flats, the rebuild may affect the entire building, making it more difficult to estimate how much cover is required. You need an estimated cost for rebuilding your home so that you know how much buildings insurance to take out. If you underestimate the cost, there could be a shortfall if your home needs rebuilding. If you overvalue the amount, you’ll be over-insured and pay too much in premiums. Given flats and maisonettes are constructed differently to houses, a surveyor may be required for an accurate valuation.

To check your rebuild costs you can take a look here. We are not affiliated with Rebuild Cost Assessment however we have used them many times.

For home insurance quotes, please get in touch with us to obtain a competitive quote from your local independent insurance broker – Bloomhill Insurance Solutions Ltd.