High Rebuilding & Contents Cost

Astaroth

Porker wrote:

but why have £1m rebuild if you dont need it? surely averages like that mean some people are paying more than they should for elaborate cover? conversely some people (ie those with a £900,000 rebuild cost) will be getting a great deal...wont they?

As with any unlimited policy you are correct... works for some people doesnt for others.

I suspect what they will actually do behind the scenes is calculate that a 4 bed detached house built in 1980 in a WR1 postcode is going to be roughly £150,000 in rebuild and therefore base their rating on this. Of cause if your house is £100,000 rebuild the price will be higher than it used to be but if your house is £200,000 rebuild you are getting it cheaper.

The only reason there will be a £1m cap at all is just to avoid the risk that some non-standard property tries to insure and therefore the rating system falls down

ArchieB_2

£1M cover does not mean that is what you are rated on. They rate you according to a number of factors (some just use the number of bedrooms). A bedroom rated policy is nothing new but by providing a high sum insured, the risk of being underinsured is removed.

Buildings cover is so cheap that the fact that they may rate you £1,000 higher than is needed, is more than compensated by the fact that you won't be underinsured in the event of a claim.

ArchieB_2

Wrote that before Astorath posted that above.