Buildings Insurance - Rebuilding Cost. It is common sense to take out buildings insurance when you purchase a property. In any event if youre taking out a mortgage your lender will insist on it. You will need to know the rebuilding cost of your property so that you may insure for the correct amount.

You may make your own estimate by finding out the external floor area of your home - both upstairs and downstairs and then multiplying this number by the estimated building cost per square foot or square metre.

The sum insured under a buildings policy must be the full rebuilding cost of the home. But remember the market value of your home or the Council Tax band valuation actually has no direct relationship to the rebuilding cost.

You may instruct a member of the Royal Institution of Chartered Surveyors to prepare a professional Rebuilding Cost Assessment for insurance purposes.

Alternatively you could work out the cost yourself. The RICS has a detailed calculator to house rebuilding costs.

Compare Home Insurance now

©Moneyextra.com

Moneyextra.com recommends you take independent financial advice before acting on any article