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What does 'rebuild cost' of my home mean?
The rebuild cost is the amount it would cost to completely rebuild your property in the event your current home was destroyed, for example in a fire. This would include the cost of materials and labour. The rebuild cost is not necessarily the same as the market value of your home (see below).
How do I find out the rebuild cost of my home?
The simplest way to establish how much it would cost to rebuild your home is to get a quote for home insurance. When you apply for buildings insurance and get to the section where you are asked for your property’s rebuild cost, the Uswitch comparison tool will generate an estimate for this figure. The estimate is based on your property type, its location and age, the number of rooms and the materials used in its construction.
You can also check your current home insurance policy or a recent mortgage valuation for a rebuild cost. Just keep in mind that mortgage valuations often include land value, so they might not be as accurate. For the most precise figure, you could hire a chartered surveyor, though this can be pricey.
What's the difference between the rebuild cost and the market value?
The rebuild cost of a property covers the labour and materials needed to construct your home from scratch. The market value is the amount the home would currently sell for if it was marketed by an estate agent. The market value covers not just the home’s structure but also the land it is built on and the general desirability of its location. For example, homes that are near to transport links or good schools could have higher market values – but these factors would have no bearing on rebuild costs.
For standard properties, a home’s market value is usually higher than its rebuild cost.
Why do I need to know the rebuild cost of my home?
Your home’s rebuild cost is a crucial factor in setting insurance premiums, so when you apply for buildings insurance, you’ll need to provide a rebuild cost figure. As mentioned above, if you use a comparison site to get home insurance quotes, you should get an estimate of the rebuild cost during the process.
What happens if I overestimate the rebuild cost of my home?
If you set too high a figure for your rebuild cost, you could end up paying more than you need to in annual home insurance premiums.
What happens if I underestimate the rebuild cost of my home?
On the other hand, if the rebuild cost figure on your insurance policy is too low, you could run the risk of having a claim turned down on the basis that you are underinsured. In a worst-case scenario in which your home was destroyed, this could mean the insurance payout does not cover the full cost of the rebuild.
How do I calculate the rebuild cost?
The Building Cost Information Service (BCIS) offers an online calculator [link: https://abi.bcis.co.uk/calculator/calculator.aspx] that can help you get an accurate rebuild figure. It’s free to use, but you need to register before doing so – and you can only use the calculator four times a year.
You’ll need to provide details such as when your home was built, approximately, how many rooms it has, the materials used in its construction and its external floor area.
How do I work out the area of my home in square metres?
If you’ve bought your home recently, its area in square metres may have been given on the estate agent’s particulars or on a home-selling website. These details may only cover the internal floor space, however – so you’ll need to add on the thickness of walls to give an external floor area figure.
To calculate the figure yourself, measure the length of the side and front and multiply the two numbers together to give a figure for the external area of the ground floor in square meters. If your first floor is identical to the ground floor, just double the figure. If not, calculate the internal area of the upstairs and then add on extra for external walls.
How do I know if my home is a listed building?
If your home is a listed building, you are likely to face a higher rebuild cost and may need to enlist the services of a chartered surveyor to get an accurate rebuild figure. You can check online whether your home is listed using one of the following websites depending on where you are in the UK.
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