{"id":1335,"date":"2024-09-20T11:00:04","date_gmt":"2024-09-20T11:00:04","guid":{"rendered":"http:\/\/blog.schofields.ltd.uk\/?p=1335"},"modified":"2024-09-20T11:34:58","modified_gmt":"2024-09-20T11:34:58","slug":"calculate-buildings-insurance-rebuild-cost","status":"publish","type":"post","link":"https:\/\/www.schofields.ltd.uk\/blog\/1335\/calculate-buildings-insurance-rebuild-cost\/","title":{"rendered":"How to Calculate the Rebuild Cost of Your Holiday Home"},"content":{"rendered":"Reading Time: <\/span> 4<\/span> minutes<\/span><\/span>

\"Rebuild<\/p>\n

Your holiday home is likely to be one of the largest financial investments you will make in your lifetime. Therefore, the buildings sum insured must be accurate so that if your property was damaged by fire or flood, for example, it will be restored to its former glory.<\/p>\n

Research shows that millions of homes could be under-insured, risking a major financial loss should disaster strike. Ultimately, it is you the property owner who is responsible for making sure that the sum insured is accurate so that this doesn\u2019t happen \u2013\u00a0fire leaves family \u00a3450,000 out of pocket.<\/a><\/p>\n

What\u2019s the difference between buildings and contents insurance?<\/span><\/strong><\/h2>\n

It\u2019s important that holiday home owners understand what building insurance covers as there\u2019s a lot of confusion between buildings and contents. This confusion can lead to claims disputes and holiday homes being underinsured.<\/p>\n

Buildings insurance covers the structure of the building, such as \u2013 walls, windows, the roof, plus permanent \u2018fixtures and fittings\u2019 such as bathroom suites, toilets, fitted kitchens and wardrobes. The definition of buildings usually includes domestic outbuildings, garages, fixed fuel oil tanks, garden sheds, swimming pools, tennis courts, drives, patios, terraces, walls, gates and fences.<\/p>\n

As a rule, can it reasonably be removed and taken to another home if you move? If it can, then it is \u2018contents\u2019<\/strong> and it will not<\/strong> generally be covered by building insurance.<\/p>\n

But what about laminate wooden flooring where the individual planks are glued together and fixed under a skirting board or beading? It\u2019s a \u2018fixture and fitting\u2019 and part of the building.<\/p>\n

What does buildings insurance cover?<\/span><\/strong><\/h2>\n

Buildings insurance covers the cost of rebuilding or repairing damage to your holiday home (other than that arising through wear and tear) for \u2018specified perils\u2019.<\/p>\n

These usually include fire, flood, subsidence, earthquake, storm, lightning, theft (or attempted theft) vandalism, escape of water, oil and damage caused by falling trees.<\/p>\n

Is buildings insurance compulsory?<\/span><\/strong><\/h2>\n

If you have a mortgage on your property, the lender will insist you take out buildings insurance. Otherwise, buildings insurance is not compulsory, but being uninsured is a huge risk.<\/p>\n

Why you need to know how much it costs to rebuild your holiday home<\/strong><\/span><\/h2>\n

When you apply for insurance, the insurer will require a buildings sum insured to calculate the buildings insurance premium.\u00a0A common mistake is that people use the purchase price or the current market value for the sum insured, this is wrong.<\/p>\n

The buildings sum insured should represent the total cost of reinstating your holiday home \u2013 including demolition, debris removal, professional fees (architects, surveyors, engineers, legal) and the additional cost of complying with government or local authority requirements.<\/p>\n

Calculating your holiday home rebuild cost<\/span><\/strong><\/h2>\n

If you have recently bought your holiday home the \u201cminimum reinstatement cost\u201d or \u201crebuild value\u201d for insurance purposes will probably be stated on your survey, mortgage valuation or deeds.<\/p>\n

Alternatively, there are two other ways to calculate how much it would cost to rebuild your holiday home, hire a surveyor or use a rebuild cost calculator.<\/p>\n

ABI buildings insurance rebuilding cost calculator<\/span><\/strong><\/p>\n

If your UK holiday home is of standard construction, the Association of British Insurers (ABI) offers a free (registration required)\u00a0rebuild cost calculator<\/a>\u00a0to help you assess the rebuilding cost of your property. To use the calculator and get an approximate rebuild cost, you\u2019ll need to measure the external floor area for both upstairs and downstairs.<\/p>\n

There are several restrictions to the calculator. For example, properties with unusual features such as thatched, listed buildings and houses made of non-standard materials.<\/p>\n

Therefore, the best way to get an accurate rebuild cost of your holiday home is to ask a chartered surveyor to carry out a rebuild estimate.<\/p>\n

Hire a chartered surveyor<\/span><\/strong><\/p>\n

For UK homes, the best way to get an accurate rebuild cost is to instruct an RICS qualified chartered surveyor to visit your property and conduct a rebuilding cost survey. You\u2019ll receive a comprehensive Rebuild Cost Assessment (RCA) report guiding you on how much you should insure your buildings for.<\/p>\n