UK Landlord Forum / Life

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I've always gone with insurers' recommendations before, but maybe they are out of date and I should increase it.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?

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.

Quote from: Hippogriff on July 22, 2022, 11:13:56 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.

Quote from: Saracen on July 23, 2022, 07:54:29 AM.......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.

But you should be aware that if you underestimate the rebuild cost by 10% and claim £1000 for some lesser damage, then the insurance company will only pay out £900.

Quote from: HarryStoli on August 22, 2022, 10:03:18 AM
But you should be aware that if you underestimate the rebuild cost by 10% and claim £1000 for some lesser damage, then the insurance company will only pay out £900.

How would the insurer know that the rebuild cost is underestimated? If you get somebody in just to re-plaster a ceiling, he's not going to submit a binding quote for rebuilding the whole house along with his invoice.