Building insurance quotes

moneysaver1978

As we get close to exchange date, we are looking to get quotes for a building insurance. Our mortgage offer requires a minimum cover of £290,000 (survey report says £180,000) however CompareTheMarket based on BCIS, calculated the rebuild value of £336,000.

For a peace of mind, should we use the higher figure or is the calculation meaningless?

Also if we have an extension (porch and/or in the back) in future, should we readjust the rebuild value on renewal?

Many thanks in advance!

user1977

I doubt the higher figure will make any significant difference to the premium.

Yes, ideally you should keep the rebuild amount up to date.

DullGreyGuy

Or alternatively buy a bedroom rated policy which will have a blanket value... eg M&S Home insurance (aviva) is £1,000,000 on its standard policy or Unlimited on its Premier policy. 

moneysaver1978

So no harm to go for BCIS figure as long as it's above the mortgage offer requirements, right?

DullGreyGuy

moneysaver1978 said:

So no harm to go for BCIS figure as long as it's above the mortgage offer requirements, right?

You'll never have a problem with being overinsured other than paying more premiums than you strictly need to... your claim will ultimately be limited by the lower of the actual rebuild cost at that point in time and the policy limit 

moneysaver1978

DullGreyGuy said:

moneysaver1978 said:

So no harm to go for BCIS figure as long as it's above the mortgage offer requirements, right?

You'll never have a problem with being overinsured other than paying more premiums than you strictly need to... your claim will ultimately be limited by the lower of the actual rebuild cost at that point in time and the policy limit 

Sounds good - there's only £7 difference between 290K and 336K so will go with the "higher" premium.