Buildings Insurance

Mussels wrote

You need enough to cover site clearance and rebuild if your house gets blown up. A lot of the value is in the land area which isn't really relevant to insurance.

Ares wrote

What he said.

Like as not if people had the chance, were it not for planning permission, people would buy your house and knock it down to build their own. Alas you live on a small crowded island so the land is worth a hell of a lot more than it would cost to rebuild your home.

Kneerly Down wrote

Normally you rely on the survey when you buy the house and then index it on a yearly basis.
Maybe ask the previous owner what sum they had covered. The simplest survey tends to have a rebuild estimate.

As for percentages, ours is 160% of the value of our house, but it's difficult to find builder who could faithfully rebuild a 1760s house these days.
Normally most new build houses would have a rebuild cost c.60-75% of the value, though it's difficult to generalise.

Ares wrote

Not forgetting the price premium per square foot in say urban london vs. the provinces.

trogladyte wrote

So 86% is enough then - because the land must account for more than 14% of the value. Is that right?

Quote

Anyone know about this stuff?

Ares wrote

Sounds about median from my limited experience.

By and large in the UK, unless you live in a 'listed' building your 'sale' value of your house will be a hell of a lot more than the rebuild cost.

Ares wrote

Trog, if you live in the SE 86% sounds fine tbh. Many blocks of flats run at a much lower ratio for the reasons stated above.

You don't state whether you own a house, or flat, or the land holding arrangements. But, generally speaking, home insurers don't try to downsell on coverage.

trogladyte wrote

It's a victorian freehold semi in leafy suburbia.

davevmax wrote

yeah! Aren't you just! Why is it so different?There's thieves everywhere!!

RossR46 wrote

All i know is it cost £30 a month.

davevmax wrote

Yeah! soz! that was meant for elsewhere!! Am only a fkn joiner!!