Home buildings insurance: the correct sum insured
Many people think that the price that they paid for a house or the current market value is what they should insure for. What actually is required is the amount to
- Remove debris
- Pay architects, surveyors and any relevant planning fees
- Have the house rebuilt to the standard that it was before the event
This often considerably less than the market value, particularly in London & the South East. Market values mostly depend on location. Over-insurance is a waste of money. Under-insurance is risking your claim not being met in full or, if seriously under-insured, at all.
If you have recently purchased the property and have had a survey carried out, the survey report should include a rebuilding or reinstatement value. If you have owned the property for some time, it may be worth having a new survey carried out. There is also a useful website https://abi.bcis.co.uk which will give a close indication although will be fairly generic and cannot take into account individual features of your property, such as fitted kitchens, bathrooms and bedrooms; outbuildings; walls, gates (especially electric or high-security gates) and fences.