There was a lot to think about and prepare for the COVID-19 pandemic, and when you move home, it can be easy to miss the finer details. However, there are some things that you absolutely must do right the first time.
If you have ever insured a property, you know that taking out home insurance is based not only on the “market value” of your property – the amount for which it is sold today – but also on the “cost of rebuilding”.
This refers to the amount of money it would cost to rebuild or restore your property if it were completely destroyed by an insured hazard.
Your insurer only pays the amount for which you have insured the building. If you misjudge the insured sums and your property needs extensive renovation work, you will not receive a sufficiently high payment. Smaller claims are also reduced by the percentage of which your building is deemed to be underinsured.
Whether you are a homeowner or a landlord with commercial and / or residential property, it is important to do the calculations correctly. Here are some top tips to get your recovery value totals correct:
Consider all variables
It’s not just the size of your building that determines the cost of reconstruction. While this affects the amount of materials used, you also need to consider which ones. Is it made of certain or unusual materials? Also take into account the style, quality and location of the building. Don’t forget to indicate the labor costs, which depend on the size of the project and the duration of the new construction.
Changes to UK building codes and stricter environmental laws can mean that rebuilding your building will cost more today than when you first insured it. Other geographic factors also make a difference – for example, the cost of reconstruction in the north differs from that in the south.
Listed buildings, listed buildings and those that are otherwise “outside the norm” would require the attention of specialized construction workers and must therefore be assessed on site by experienced experts.
Get advice from experts
Regardless of what type of building you own or what it is used for, a professional surveyor’s assessment is the most accurate way to get an insured amount. This gives you peace of mind that your insurance would cover all of the restoration costs if ever needed. You should also reassess your buildings at regular intervals.
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