Buildings Insurance: When Rebuild Costs Are Too High

grahamR_3

I am in the process of buying a property. When I came to organise the insurance (having already accepted the mortgage, exchanged contracts and being 2 weeks away from completion) I “discovered” the mortgage company had given a huge rebuild cost.

Their estimate is over £500k, while my structural survey came up with a more reasonable £380k (about £60k above the BCIS, but that would reasonably cover the non-standard aspects of the property, which is listed).

While I’m trying to get the mortgage lender to justify their over-valuation, there isn’t really enough time to sort everything out before completion. So, I’ve got to try and find buildings insurance for a listed building, built pre 1800, with high rebuild value.

I know that Saga do a category based insurance: instead of specifying a rebuild cost, you simply give the number of bedrooms and the postcode. Unfortunately, I’m too young to qualify.

More Than quoted me £2,600pa for buildings and contents! The confused.com insurers refused to quote. How do I get reasonable insurance premiums? (Direct Line may offer a solution, but they won’t quote online for older properties.) Are there any other “category” insurers?

ArchieB_2

You need to be looking towards high net worth insurers such as Chubb, Oak or Hiscox and you may be best speaking to a broker. You need a specialist insurer and forget confused.com.

You will pay an appropriate premium rather than a low premium and you simply cannot compare DL to these types of policies. Depending on your contents requirements you may find that a Mid Net Worth policy from Hiscox (can be purchased Direct) will suffice.

Astaroth

Didnt note that the OP state they need a high net worth insurance?

Certainly Direct Line & Privilege now offer a blanket £1,000,000 cover on buildings so will cover your rebuild needs irrespective of if your survey or bank were correct.

grahamR_3

Thanks for the suggestions. Direct Line's blanket cover doesn't apply to older properties. (I think the cut-off date is 1840.)

I will see what Chubb, Oak or Hiscox have to say.

regularsaver1

wouldn't unlimited cover avoid this problem?

Halifax is unlimited - so rebuild never under insured

grahamR_3

Thanks for the suggestion, regularsaver.

The unlimited (or £1,000,000) rebuild cover policies seem to include clauses which would exclude properties that might actually be expensive to rebuild.

In my case:
direct line -- property too old
halifax -- don't like timber frame buildings

Someone this morning declined on the basis that there were exposed beams inside the property. :huh:

If anyone knows of an unlimited cover policy that wouldn't exclude my property on the basis of age or being timber framed, I'd love to hear!

In the meantime the best quote I've had so far (Hiscox), runs to £1600pa. A vast improvement on More Than, but still... ouch!

rune2000

Have you tried Llyods TSB? They do provide unlimited cover on the older property.

rune2000

I went to https://www.confused.com. Typed in a few details and it looks as though Endsleigh will insure you for £1300..Ouch but £300 buys a lot of elastoplasts.

A specialist insurers you could try might be Key Connect on 0800 496 0335

Hope this helps

ArchieB_2

You have specialist needs because of your building type, I work in the industry and I hold by the fact that you need a specialist insurer. High Net Worth Insurers are experts at repairing homes sympathetically and if you did have to claim you would rue the day you went for the cheaper quote.

rune2000 says that £300 buys a lot of elastoplasts but you may find them trying to repair your exposed beams with them if you go for the cheaper option.

regularsaver1

jeez that is expensive - but like you said if not standard construction then not all insurers will cover