Value for rebuild - more than market value?

SaveSomeMore_2

I've had a survey back. The market value is fine (bang on purchase price), however the value for rebuild puposes is 160% of the market value.

Reading around online it says the rebuild value is usually a lot lower?

Why would mine be so much higher, and does this mean I'm going to have to have expensive insurance as though I had a house double the price?

kinger101

Is it listed? Or built with non standard materials (stone instead of brick). Or in a remote or inaccessible location. Or perhaps just an inexpensive house.

It won't add much more to insurance, if anything. Many policies are for fixed amounts these days anyway (e.g., single price for homes up to £500,000).

Just get an online quote of you want an estimate. Or phone an insurance company.

phill99

MOST houses have a higher open market value than rebuild cost. However NOT ALL. Terraced houses, for example, often have a rebuild cost higher than their open market value. This is particularly the case in areas where houses are low value.

Houses also with unique features, problems with access, sloping sights etc etc.

So don't be alarmed, it's quite normal.

DaftyDuck

Listed buildings often have higher rebuild costs, as do terraced or semi detached. Houses subject to flooding (where rebuild would require substantial modification) and others in environmentally sensitive areas also have high rebuild costs.

SaveSomeMore_2

Ah, thanks guys.

Yes, its a bog-standard low value (or moderate for the area) mid-terrace so that makes more sense.

I'd still reckon you could squeeze an equivalent house in the gap for far, far cheaper were it to fall down though! Fingers crossed we never get to that stage though!