Tuesday, 3 August 2010

How do we work out the rebuild value of our home?


Although most clients can get a quote from the web or a call centre BUT those who have had issues getting cover because of a number of reasons, such as being flooded or in a new flood plain. the house has suffered underpinning/subsidence or is vacant, or you have a bad claims record, a bad credit history (any more you can think of ?) and need specialist insurance help please remember too give them the right sums insured on both building and contents !


As these products are done the old fashioned way on actual sums insured unlike the TV adverts for insurance that say for ease of sale that say you are insured " FOR UNLIMITED BUIDINGS OR ARE AUTOMATICALY COVERED UPTO SOMETHING LIKE £500,000 OR £750.000, £1 MILLION FOR BUILDINGS AND PERHAPS UPTO £50,000 OR £75,000 ON CONTENTS" The missing word is UPTO you in fact never be paid for more than the house costs to rebuild or reinstate or your contents are actualy worth it is just a sales ploy in fact !!

So how do you calculate the TRUE rebuild or reinstement value of your home ?! Dont be over or under insured


THE MOST IMPORTANT THING IS !!!....

The resale value does not reflect the rebuild cost - Its just labour prices to rebuild it so if you moved the whole house from one of end of the country to another the rebuild will stay about the same although of course the value will vary according to area

A simple guideline is inside the M25the rebuild on a "Typical" 2 bed terraced house is £150,000 a 3 bed about £200,000 as a rough figure and for blocks of flats about £100,000 for a one bed and £125,000 for a 2 bed

Outside the M25 reduce the figure by 20% If the house is built of stone or brick increase the value by 50% !

The more scientific method is to measure the house and find out the square footage NOT metric measurements please

If you think of your house in its simplest terms like a child's drawing it just 2 boxes on top of each other so measure in feet the width of the house not including the garden then the depth of the house in feet then multiply by that by the number of stories

FOR THE CONTENTS

A typical first time flat needs about £15,000 contents cover a 2 bed maybe £20,000 A small 2 bed house about £20,000 mid sized 2 bed £25,000 a small 3 bed £30,000 or a larger one £30.000 or £40 or £45,000 on a 4 bed etc

Article source: Neil Cook


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1 comment:

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