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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