Rebuild cost for buildings insurance

jucee84

Hi,

First time buyer here, due to get the keys on the 22nd so looking into getting my buildings & contents insurance in place now.

On my mortgage it states "The minimum buildings sum insured required is £245'000"

Does this mean I put in £245'000 as the rebuild cost? I've already done a quote and used the £174'000 rebuild cost that ABI gave me based on my property value of £250'000

Should I put £174'000 or £245'000 as my rebuild cost for my insurance?

Thanks in advance

G_M

jucee84 wrote: »

Hi,

First time buyer here, due to get the keys on the 22nd so looking into getting my buildings & contents insurance in place now.
Have you Exchanged?
If no, you cannot know you will get the keys on 22nd.
If yes, you should insure NOW

On my mortgage it states "The minimum buildings sum insured required is £245'000"

Does this mean I put in £245'000 as the rebuild cost?
Yes
I've already done a quote and used the £174'000 rebuild cost that ABI gave me based on my property value of £250'000
Rebuild costs are always an estimate so
* ABI is a rough guide.
* So is the mortgage figure (though the lender will insist on it)

Should I put £174'000 or £245'000 as my rebuild cost for my insurance?

Thanks in advance

Put the higher figure. The difference in premium will be a few pounds. Better to be over-insured than under.

You'll find many insurers though give a blanket cover up to (typically) £500,000 (or £1m for top-end insurance)

jucee84

Thanks for the reply,

It's a new build, and all that remains to be done is to tar the drive, a deep clean and final lick of paint inside. Was round to see the house on Saturday and the site manager said that'll all be done this week, and handover on the 22nd as we'd initially planned.

Turns out the insurance company has a £500'000 as standard cover like you mentioned. I'd only done a comparison quote but when I clicked through I found this out