Building new extension and insurance premium

Options
Windsorcastle
Windsorcastle Posts: 547 Forumite
Name Dropper First Anniversary First Post Combo Breaker
in Insurance & life assurance
I am the freeholder for a property converted into 2 maisonettes, and therefore responsible for insuring the whole 'block'.


This year, the downstairs leaseholder has built an extension to his property which cost £57,000. The buildings insurer are asking me whether the existing cover is still sufficient or whether I need to increase the sum insured.


Presumably I do have to increase it, but do I increase it for the whole building cost of £57,000? Or what?


I don't want to be under-insured but I also don't want to be insuring too high a sum. And I'm also a bit !!!!ed off that if they increase the premium, I will end up having to pay extra as well as we always split the premium. Sorry if it's a daft question, but any advice?

Comments

  • Robin9
    Robin9 Posts: 12,102 Forumite
    First Post First Anniversary Name Dropper
    Options
    The cost of the extension is not relevant to the insurance cover; nor is the price the property might sell at / be worth.

    It's the rebuild cost that matters.
    Never pay on an estimated bill
  • Windsorcastle
    Windsorcastle Posts: 547 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    Robin9 wrote: »
    The cost of the extension is not relevant to the insurance cover; nor is the price the property might sell at / be worth.

    It's the rebuild cost that matters.



    Thanks. But how do I work out the rebuild cost once a new extension has been built? Presumably the new extension increases the rebuild cost of the whole building, but I have no idea how to work it out...
  • paddyandstumpy
    paddyandstumpy Posts: 1,486 Forumite
    First Anniversary Name Dropper First Post
    Options
    Google rebuild cost calculator. The one on the abi website uses RICS data to rate it.
  • rs65
    rs65 Posts: 5,682 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Options
    Windsorcastle wrote: »
    But how do I work out the rebuild cost once a new extension has been built? Presumably the new extension increases the rebuild cost of the whole building
    If you were happy with the previous sum insured, I would just increase it by £57,000. Probably a bit less but shouldn't be more.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards