Buildings Insurance

erind

Hi,

Im in the process of buying a house for £193,000. I need building insurance, but Im not sure how much I should insure it for. From what Ive read, it should be the cost to re-build the property. Quite frankly I haven't got a clue. Can anyone please help?

Thanks

wosters

Your "valuation report" should tell you what the rebuild cost should be so it's best to insure for this amount or over. Sometimes the bank / building society will tell you the figure that it requires for rebuilding. Good luck with the move.

erind

Thanks for that Wosters. I cant believe I didnt notice it was on the valuation report. £97k.

erind

Also whilst on the subject. I know contents insurance is a personal thing, but how much for an average family of 3 in a 3 bed detached? I have no antiques or really expensive items, apart from a £1500 Lcd Tv, and your usuall average furniture. Do I literally go around each room totting up the main items?

johnofhertford

Most insurers will have an amount that put on your contents policy as a default, but you really do need to check this is enough by checking everything in your house. Don't forget carpets, curtains, CDs, books, plates, pots and pans. It all adds up surprisingly quickly. Some policies do offer "unlimited contents" e.g. my Halifax policy, which is quite handy because you don't need to go adding everything up, but depending on your circumstances this may prove to be expensive (it's not in my case which is fortunate).

Also look out for the limit on high risk items, typically electrical items like TVs, computers, HI-FI etc. There is always a separate limit for these items and you need to check what it is, and that you have enough cover, but be aware that the high risk items limit will often impact the premium much more than the overall limit, so don't pay for what you don't need. There will typically be a single item limit as well, e.g. no single worth more than 1500 unless it's declared specifically (you won't necessarily have to pay extra for this, but you will need to declare those items - sounds like you don't have though, because your TV will probably come under the limit - CHECK!)

One final thing, if you want to cover property away from your home, e.g. an IPOD, camera, watch, wallet, then you'll need personal possessions cover. This section can also cover your mobile phone, but check the policy because some insurers exclude mobiles.

Check your limits every year as you amass more and more stuff, don't leave it your insurance company to do it for you.

Astaroth

It is actually very much a case of having to add things up yourself.

You also need to ensure what each insurer counts as "high risk" or "valuables" as this can vary greatly and as the previous poster says does have a great impact on your policy price.... for example with halifax they count anything like TV/ PC/ MP3 etc as "high risk" which ment that I had to have £15,000 of cover for this where as Egg only count the more traditional jewellry, art collections etc and not electrical goods so only need £6,000 which 1/2s the premium