landlord building insurance - rebuild cost

want2bmortgage3

i need to purchase buildings insurance as a landlord asap but first trying to calculate the rebuild cost. using mouseprice my property, a 2 bedroom maisonette, is valued at £144k and is 65m2 big (floor area).

the bcis rebuild value calculator doesn't include an option for flats/maisonette, and the only option that works for my size of property (floor area) is semi detached bungalow. this comes up at £76k.

i can't find any paperwork for when i first got the mortgage as the survey estimated the rebuild cost back then, and my last buildings insurance policy sheet doesnt mention this cost.

so what i'm asking is am i safe to use the 76k suggested by bcis even though thats for a semi detached bungalow? does it make much difference to my insurance price if i insure for higher than this just to be sure?

i've heard it suggested that you should insure up to 80% of the property value but that seems high, and well over 100k which i know for sure wasnt the cost the original survey came out with!

daveyjp

If it's a flat in a block the whole block should be insured by the management company with each owner contributing to this cost.

Oscar_The_Grouch

I presume you are in Scotland, which is why you need the individual insurance. On that basis, I have 2 suggestions for you:

1. Cover your !!!
Print the page from BCIS so you have evidence of why you insured for £76k. That way, you can argue that you followed the best advice you could find. Most insurers will only take into account your underinsurance if you are less than 80% insured, so unless you should have had more than £100k, you are safe.

2. Speak to the mortgage company
The mortgage company should have a copy of the original documents you submitted. They will send you details of what you should be insured for.

want2bmortgage3

ok thanks i'm not in scotland, and it is a block of 4 but each leaseholder has to arrange their own insurance, there is no service charge just a ground rent.

think i'll give the mortgage company a call then to get the exact figure. thanks!

want2bmortgage3

turns out the rebuild cost is only estimated as £59,000!

dacouch

Where is this figure from and when is the document dated?

FlameCloud

Have you thought about all the communal areas- gardens, stairwells, roof spaces, lifts?

There is a reason why it is silly to only insure one property, and this is before you have arguements about large claims that damage more than one flat with different insurers.

Can you not go as all four of you to a broker for a combined policy?

want2bmortgage3

each property has its own small garden, no stairwells or lifts, no communal areas. they all have their own front doors. the 59,000 was from my mortgage company after i called them.

mikey72

The only good way is to speak to the insurance company, and see what they suggest. If you under insure it you will have pronlems, if they suggest a value at least you can argue later if they say it's not enough. (Bear in mind if it is undervalued they will pro-rata any claim you make)