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    • Windsorcastle
    • By Windsorcastle 14th Sep 17, 3:30 PM
    • 480Posts
    • 264Thanks
    Windsorcastle
    Building new extension and insurance premium
    • #1
    • 14th Sep 17, 3:30 PM
    Building new extension and insurance premium 14th Sep 17 at 3:30 PM
    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?
Page 1
    • Robin9
    • By Robin9 14th Sep 17, 3:44 PM
    • 1,650 Posts
    • 1,074 Thanks
    Robin9
    • #2
    • 14th Sep 17, 3:44 PM
    • #2
    • 14th Sep 17, 3:44 PM
    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
    • By Windsorcastle 14th Sep 17, 3:57 PM
    • 480 Posts
    • 264 Thanks
    Windsorcastle
    • #3
    • 14th Sep 17, 3:57 PM
    • #3
    • 14th Sep 17, 3:57 PM
    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.
    Originally posted by Robin9


    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
    • By paddyandstumpy 14th Sep 17, 5:40 PM
    • 790 Posts
    • 324 Thanks
    paddyandstumpy
    • #4
    • 14th Sep 17, 5:40 PM
    • #4
    • 14th Sep 17, 5:40 PM
    Google rebuild cost calculator. The one on the abi website uses RICS data to rate it.
    • rs65
    • By rs65 14th Sep 17, 7:39 PM
    • 5,222 Posts
    • 2,476 Thanks
    rs65
    • #5
    • 14th Sep 17, 7:39 PM
    • #5
    • 14th Sep 17, 7:39 PM
    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
    Originally posted by Windsorcastle
    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.
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