Home Rebuild Cash Settlement

TELLIT01

Hoenir said:

TELLIT01 said:

Hoenir said:

TELLIT01 said:

Our current buildings insurance doesn't have a limit on the value of the property, which is one of the reasons I took that insurance.  All the risk lies with the insurer.

You weren't asked for any information of this nature on the application form ? 

Information of what nature?  The policy states 'Unlimited' for rebuilding value.

The insurer would have asked questions on the application form. .  

Be foolish to charge the same premium for a house costing £200 to rebuilt another costing £2 million. 

Foolish on the part of the insurer or not, that's the way it is.  Wording from policy document 

Buildings> Sum insured: Unlimited

DullGreyGuy

TELLIT01 said:

Hoenir said:

TELLIT01 said:

Hoenir said:

TELLIT01 said:

Our current buildings insurance doesn't have a limit on the value of the property, which is one of the reasons I took that insurance.  All the risk lies with the insurer.

You weren't asked for any information of this nature on the application form ? 

Information of what nature?  The policy states 'Unlimited' for rebuilding value.

The insurer would have asked questions on the application form. .  

Be foolish to charge the same premium for a house costing £200 to rebuilt another costing £2 million. 

Foolish on the part of the insurer or not, that's the way it is.  

Other than it isnt, they can estimate rebuild cost from age, location, the count of rooms, construction and listed status. 

A 4 bed, 2 bath, 1 reception detached house in Canterbury built of brick and tile in the 1980s is not going to cost 1000x the rebuild cost of another with all those same points. The only thing really missing is the square meterage but even doubling the area doesnt double the cost of the rebuild and oddly enough if you go from 140m2 to 280m2 it would be highly unusual to have simply made every room bigger, in most cases you'd have added some more bathrooms or another reception room or two which is declarable and will have increased your premiums.

The bits that can vary significantly between properties are the fixtures and fittings but again postcode will give you a socio-economic status and whilst there will be outliers its sufficient to guesstimate if the kitchen is more likely from Ikea with Becko appliances or Roundhouse with Wolf/Sub Zero. It's also the case these are not high net worth policies and inner limits are likely to be too low for those with £5m rebuild cost properties.