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mortgage valuation: insurance

w00519772 · 2014-03-30 20:23:51

i recently received a mortgage valuation report. The market value equalled the offer so the mortgage was approved. However, there is an entry on the valuation report called: insurance and this is about 92% of the market value. What is meant by insurance? i don't believe it refers to building insurance but i am not sure.

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sterl1ng Posts: 609 Forumite

31 March 2014 at 10:38AM

w00519772 wrote: »

i agree it seems high if it refers to the rebuild value. The house was built in 2005. I read somewhere that rebuild costs are usually about one third of the inflated market value.

Interesting, I'm currently looking at building insurance through Aviva to get rough idea for my budget planning. There's a part called 'Building sum insured', I figured you just put in full property price you paid for? Mind you its share of freehold flat so not sure how that works. So should 'building sum insured' be only part of value of property I'm insuring?

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mortgage valuation: insurance

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