Insurance - rebuild costs

[Jeremy]

For insurance purposes, what are the approx rebuild costs of a typical terrace house?

[skidmarks]

The building survey should tell you that. I think our two bedroom one was no more than ?100k

[Jeremy]

Thanks... I have a figure from the building survey, but this does not match the amount the property was insured for by the previous owner. I was going to just use the higher of the two, but am now thinking of getting a survey, if there's a possibility it might pay for itself...

[ratty]

Doubt it will - premium will not be effected that much on a rebuild cost difference of say ?50k because it is highly unlikely that the insurers would ever have to pay that much out. Important to get it right though, because if you are underinsured they will drop the payment of any potential claims by a percentage.

I would use the higher of the 2

[Siduhe]

Also, make sure you regularly review the figure. Rebuild cost of a house 5 years into a mortgage may be quite different from when you first took it out. I know a couple who were caught out by that, following a serious house fire.

Luckily the difference wasn't that much (in the context of the total rebuild cost) and they reached an accommodation with their insurer, but it was more than they could have paid/borrowed if the insurer had stuck to their strict rights.

[Miss Tipsy Topple]

I used to be an Insurance Underwriter, and from memory most insurance companies quote on 'blanket' sums insured to prevent underinsurance. They will insure any standard building up to say ?500,00, the pricing of the insurance will depend on your type of property.

However if you want an idea of your rebuild value you can try this website:

http://abi.bcis.co.uk/