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Estimating current rebuild value for insurance purposes

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Author Topic: Estimating current rebuild value for insurance purposes  (Read 76 times)
Newbie
Posts: 6

I like property

« on: July 21, 2022, 04:58:56 PM »

I'm in the process of renewing the landlord insurance and paused when I reached the question about the rebuild value of the house. I know vaguely that building work has got a lot more expensive recently as there are all sorts of supply issues, so I wonder whether I should insure for a higher rebuild value than what the insurer suggests.

I've always gone with insurers' recommendations before, but maybe they are out of date and I should increase it. How do you calculate that?
Global Moderator
Hero Member
Posts: 4503

Abuse Officer

« Reply #1 on: July 22, 2022, 01:13:56 PM »

You don't bother calculating it.

You plump for a figure that sounds OK, for you, and also carries the level of impact on the price of the policy that you can handle... knowing that we are talking lightning strike odds here.
Newbie
Posts: 6

I like property

« Reply #2 on: July 23, 2022, 09:54:29 AM »

You don't bother calculating it.

You plump for a figure that sounds OK, for you, and also carries the level of impact on the price of the policy that you can handle... knowing that we are talking lightning strike odds here.
Thanks Hippogriff! That seems a reasonable approach, especially after I asked the insurer to quote for a higher rebuild amount and their quote was basically twice as high for twice the rebuild cost. That premium seems exceptionally poor value to me, given that the bulk of their payouts must surely take the form of smaller sums for lesser damage, rather than a total rebuild. You're right, it is very very unlikely that a complete rebuild would be needed - only a major house fire would do that.
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