The rebuild cost of your property is the amount it would cost to rebuild if it were destroyed.  In addition to the costs of materials and labour, professionals’ fees – such as architects and surveyors – should also be included.

Rebuild costs are NOT the same as a property’s market value or your council tax band’s valuation.  The market value is often higher than the rebuild cost because it includes the land on which the property sits. Rebuild costs do not include the value of the land because when a building is destroyed, the land is usually unaffected.

Insurers need to know how much a building should be insured for, in case it is destroyed and they need to pay out for it to be rebuilt.  The rebuild cost directly affects how much your property should be insured for and the amount of insurance premium you need to pay.  As the property owner, the onus is on you to get the rebuild cost figure right.  If it is calculated too low then you may be underinsured.  This means that if your property needs to be rebuilt, you’ll have to make up any shortfall between the amount the insurance company pays out and the total rebuild cost.  If it is calculated too high, then you could be paying too much for your buildings insurance.

We strongly recommend that that you hire a professional chartered surveyor www.rics.org. We have teamed up with a RICS approved firm, Rebuild Cost Assessment Ltd, who specialise in desk top assessments of rebuild value.

What do Rebuild Cost Assessment Ltd do?

They identify the correct building sum insured by providing desktop and/or site rebuild cost assessment reports (RCA’s) at affordable prices. The desktop reports are for commercial properties with a building sum insured up to £10m and residential properties with a building sum insured up to £2m. They will also carry out site RCA’s anywhere in the UK for sums insured up to £100m.

Visit https://www.rebuildcostassessment.com for more information and please note that with our discount code, the cost is reduced to £85 + VAT per property.

We advise you to review the rebuild costs on a regular basis to make sure you always have the right level of insurance cover.  This is particularly important if you make any changes to the property – such as building an extension – as it could increase the rebuild costs.

Adam Taylor

Author Adam Taylor

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