changing house buildings insurance

edited 30 November -1 at 1:00AM in Insurance & Life Assurance
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littlerocklittlerock Forumite
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edited 30 November -1 at 1:00AM in Insurance & Life Assurance
My house buildings insurance is with Zurich. It seems very expensive and I am looking at changing when it comes up for renewal in a couple of months. Thing is I live in a Victorian house with original features in a leafy neighbourhood where property values have risen in recent years. How do I calculate the cost of rebuilding to insure!

I realise I do not need to insure the market value but even building work round here costs more than in somewhere less prosperous and some of the original features (eg moulded plaster ceilings) would cost a good deal to repair if I had to claim for water danage for example.

Replies

  • EdGasketEdGasket
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    Some policies don't need a valuation as they automatically include a high 'standard' rebuilding cost. e.g. with Liverpool-Victoria I think it is £1 million.

    There are guides on calculating rebuilding costs but the thing is it is always much more than you would expect due to possible demolition, clearance of site, damage to neighbouring properties. Best to take a policy like the LV one then you won't have to worry about it.
  • hucksterhuckster Forumite
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    You would best to go for an unlimited or high set sum insured. When you look for quotes see which ones offer unlimited buildings sum insured or cover up to £1 million.

    They can often work out cheaper and you don't have the problem with under insurance. If you specify a rebuilding cost which proves too low in the event of a claim you could be penalised. The other possible gain when you have a bigger set sum insured, is in rare cases where a house cannot be built on the same plot. E.g a sinkhole means you have to find another house or plot for a house to be built.

    If you search online you will find the ABI rebuilding cost calculator, but you need to know the measurements for your house. Even with that it only works on average rebuild costs in your area for the type of the property and you would not know how much to increase it by for your particular house.
    The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.
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