Construction costs change over time, and an outdated rebuild value may leave a property inadequately insured. If a home were destroyed tomorrow, would your sum insured actually cover the cost of rebuilding it?
Rebuild value is not market value
A market valuation estimates what a property would sell for, which depends heavily on location and demand. A rebuild estimate focuses on something different: what it would cost to reinstate the building itself. The two figures can be very far apart.
What goes into a rebuild estimate
- The cost of rebuilding the structure to a comparable standard.
- Demolition and site clearance.
- Professional fees and consent costs.
- External works and structures, where these are covered.
- An allowance for cost increases during the rebuild period.
Why values go out of date
- Building costs change, sometimes quickly.
- Renovations and extensions increase what it would cost to rebuild.
- Higher-specification finishes may have been added over the years.
- Estimates made by guesswork or by a rule of thumb may never have been accurate.
Who should check?
Homeowners, landlords with investment properties, owners of multi-unit developments, and the brokers and advisers who look after them. QS Consultants provides independent Insurance Rebuild Estimates for residential homes, multi-unit developments and investment properties.
An independent rebuild estimate gives you and your insurer a figure based on the building itself, not a guess.
Find out more about our Insurance Reinstatement Estimates or request a quote.
