A Guide on How to Calculate Your Home Rebuild Cost

If you want to insure your house, you’ll need to estimate your homes' rebuild cost – that is, the actual cost of rebuilding your house from scratch. When insuring your home you are not insuring the sale value of the home as is commonly thought, but the reinstatement or rebuilding cost of your property. Don’t insure your home for its current market value or for the amount purchased. Your home valuation is linked to inflation and will be impacted by fluctuations in building costs. The definition of buildings for insurance purposes is more than just bricks and mortar. It also means anything that is fixed to your property such as a fitted kitchen, flooring, fitted wardrobes, sanitary fixtures as well as garages, sheds, outbuildings, gates and fences etc. The rebuild costs are normally lower than the property’s resale market value, as the cost of the land the property stands on is irrelevant in this case. A good guide to estimating the cost of rebuilding your home is to consider how many bedrooms there are in your home. Also included in the valuation process is whether your home is a bungalow, duplex, terrace or detached. Bear in mind that your home may have been altered over time. If you’ve added an extension or converted the attic into another bedroom, you’ll need to revise its rebuild value. If you fail to let your insurer know about any alterations you could end up under-insuring your home – remember that your insurer will only ever pay the cost of the rebuild. Every home is different, however to learn more click here for a guide to rebuilding costs from the Society of Chartered Surveyors which will aide your calculations. If your Home Insurance is due for renewal, click here for a quote. Image: Flicker/Licence