Building new extension and insurance premium

Windsorcastle

I am the freeholder for a property converted into 2 maisonettes, and therefore responsible for insuring the whole 'block'.


This year, the downstairs leaseholder has built an extension to his property which cost £57,000. The buildings insurer are asking me whether the existing cover is still sufficient or whether I need to increase the sum insured.


Presumably I do have to increase it, but do I increase it for the whole building cost of £57,000? Or what?


I don't want to be under-insured but I also don't want to be insuring too high a sum. And I'm also a bit !!!!ed off that if they increase the premium, I will end up having to pay extra as well as we always split the premium. Sorry if it's a daft question, but any advice?

Robin9

The cost of the extension is not relevant to the insurance cover; nor is the price the property might sell at / be worth.

It's the rebuild cost that matters.

Windsorcastle

Robin9 wrote: »

The cost of the extension is not relevant to the insurance cover; nor is the price the property might sell at / be worth.

It's the rebuild cost that matters.

Thanks. But how do I work out the rebuild cost once a new extension has been built? Presumably the new extension increases the rebuild cost of the whole building, but I have no idea how to work it out...

paddyandstumpy

Google rebuild cost calculator. The one on the abi website uses RICS data to rate it.

rs65

Windsorcastle wrote: »

But how do I work out the rebuild cost once a new extension has been built? Presumably the new extension increases the rebuild cost of the whole building

If you were happy with the previous sum insured, I would just increase it by £57,000. Probably a bit less but shouldn't be more.