Home Insurance - rebuild costs over a million - finding it hard to get decent quotes

Red_Arrow_X

Our home's current market value is £450k, the home report from three years ago estimates the rebuild cost at £1.3 million. The calculator on the ABI (Association of British Insurers) website seems to confirm that figure is about right.

The issue I’m facing is that it’s incredibly difficult to get home insurance at a reasonable price.

I’m currently paying around £1.5k a year with Home Protect. By comparison, I know people with homes that have a rebuild cost of £950k who only pay about £400 a year. It seems like once your rebuild cost exceeds the £1 million mark, 99% of insurance companies don’t want to deal with you (comparison sites tell you go look elsewhere). 

Does anyone have any advice (besides selling the house!)? Am I missing something that could help reduce these quotes? Or does anyone know of an insurance company that offers a more sensible premium?

It’s just incredibly frustrating to be paying nearly four times more than what others pay when the rebuild cost is only £350k more. It feels like the price increase isn’t proportional at all.

tacpot12

Might we worth talking to an insurance broker. It seems odd that your house's value is so low compared to its rebuilding cost. Most houses that sell for £450K cost about £150K to build.  

Red_Arrow_X

tacpot12 said:

Might we worth talking to an insurance broker. It seems odd that your house's value is so low compared to its rebuilding cost. Most houses that sell for £450K cost about £150K to build.  

The house is just really old (150 years), stone built. So that apparently is why it's so high. Also the location is why the market value is low (but was top end of this area).

I just tried Intelligent Insurance for a quote that MSE suggest for high value houses, standard policy, nothing like accidental cover etc. £50k contents which is standard, £400 excess. Quote came out just under £10k. This is the stuff I'm dealing with, makes no sense!

I will try a broker, that is a good idea.

mark_cycling00

Agree to using a broker and potentially getting a desktop survey done rather than using the valuation tool that big insurers use. 

Yes, stone is rather expensive now, and you'd need to be rehoused for a long time if anything bad happened and renting is also very expensive. So stone properties insurance rates have gone up a lot 

Never under insure. Increase excesses if you want to reduce the cost but don't insure less than the rebuild cost

Red_Arrow_X

mark_cycling00 said:

Agree to using a broker and potentially getting a desktop survey done rather than using the valuation tool that big insurers use. 

Yes, stone is rather expensive now, and you'd need to be rehoused for a long time if anything bad happened and renting is also very expensive. So stone properties insurance rates have gone up a lot 

Never under insure. Increase excesses if you want to reduce the cost but don't insure less than the rebuild cost

Would never dream of under insuring, not worth the risk at all.

A stone house is not unusual in Scotland. I can't be the only one in this situation?

Our neighbours have a similar property to us, with the rebuild over a million. Somehow Churchill covers them with "Unlimited" rebuild cost for £500. Yet when I called them up they just told me to go elsewhere. I don't understand.

Red_Arrow_X

I may have found an answer to the issue I was having with Churchill. Their standard policy covers rebuilds up to a million, but they also offer a Plus package, with unlimited rebuild costs.

But for some odd reason when you try and get a quote online, as soon as you say the rebuild costs are over a million it tells you to contact another company, it doesn't offer their Plus package instead.

So I guess come closer to my renewal date I will call them up and reference this package.

TELLIT01

I'm insured with Direct Line and the building sum is unlimited.

Red_Arrow_X

TELLIT01 said:

I'm insured with Direct Line and the building sum is unlimited.

OK that is good to know. Can I ask, is it silly money or in line with what you expect to pay?

They won't let me quote online but I will phone them closer to my renewal.

Seems I have a couple of options before having to go to a broker now.