Property value Vs rebuild costs

FreeBear

user1977 said:

Chances are it doesn't make much of a difference to the insurance premium anyway, given that the vast majority of claims aren't going to involve anything like a rebuild of the property.

But.... If you have a Grade II listed building that is only a partial loss, the repair build could exceed the rebuild cost by a considerable amount. Something to bear in mind if you are one of a minority buying an historic property.

eddddy

MouldyOldDough said:

The reason that I asked was a recent home insurance quote mentioned rebuild costs of £280,000 on my property and the actual property value is around £250,000
I just wondered where they got the rebuild cost from
The property has a large garden (bigger than any other house in the road)

So you're saying you got an insurance quote (I assume online) and the system suggested a rebuild cost of of £280k, and you're wondering where it got that figure from?

I suspect you answered a number of questions like:

• Age of property
• Number of rooms (bedrooms, bathrooms, living rooms etc)
• Type of property (e.g. detached, semi, terrace, bungalow, etc)
• Type of construction (e.g. Brick with tile roof)

The system would have used that information to calculate the approximate rebuild cost.

Olinda99

To take an extreme - a bungalow perched at the edge of a crumbling cliff subject to coastal erosion could have a rebuild value of £200, 000 and a property value of £1

Or a house whose garden has just had an oil well discovered in it could have a rebuild value of £200,000 and a property value of 150 million to the holder of the mineral rights

Getting_greyer

Presumably with rebuild you'd need a big skip or two to clear all the rubble. 

DullGreyGuy

Getting_greyer said:

Presumably with rebuild you'd need a big skip or two to clear all the rubble. 

Rebuild normally should be a step further and inc cost of demolishing whatever remains of the original building as well as the skips