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Rebuilding Cost Calculating
Rebuilding Cost. If you want to make sure youre paying for the correct amount for building insurance cover youll have to be prepared to calculate the rebuilding cost of your home in order to make sure you have the right amount of buildings insurance. The cost of rebuilding the property will not be the same as the market value. Surveyors and insurers have some rules of thumb to help you work out what your property is actually worth - but to be absolutely sure you should get a surveyors report. If youre buying a property the lenders valuation report will also contain a rebuilding cost figure. Broadly speaking to work out your rebuilding cost you should know the building dimensions which can be calculated by multiplying the length and width of the property in feet by the number of storeys 1. Calculate the ground floor area ground floor area Length x Width 2. Calculate the total floor area total floor area Ground floor area x Number of storeys 3. Calculate the total rebuilding cost total rebuilding cost Total floor area x Rebuilding cost per square foot. The cost per square foot will vary depending on where in the U.K. you live. Lets take an example of the building insurance rates of an imaginary insurer called Morcambe & Wise Insurance Services. Based on their long experience of insuring homes in the U.K. theyve set the following rates per square foot for semi-detached houses So for example 1. Ground floor area 30 x 40 1200 square feet 2. Total floor area 1200 x 2 2400 square feet 3. Rebuilding cost 2400 x 59 £141600 this is the amount of cover you would need for buildings insurance purposes. The above figures are only those used by the imaginary company Morecambe & Wise Insurance Services but they should provide you with a guide . Compare Home Insurance now ©Moneyextra.com Moneyextra.com recommends you take independent financial advice before acting on any article 2009-02-17 00:00:00 © Moneyextra.com