House Rebuild Costs For Insurance - Any Underwriters or RICS Guys On Here?

[developer]

I'm looking to establish an accurate rebuild cost for a couple of properties.
Two separate queries if I may:

The ABI BCIS Rebuilt Cost Calculator (which brokers all refer to) says measure the external floor area - multiply it by the number of floors and use that figure to input to their calculator.
Is it that simple to arrive at an accurate rebuild cost which would hold up on the event of a claim?

Secondly, the insurance industry websites say that the rebuild cost is likely to be less than the market value.
If I use the external area quoted by a surveyor's report on one of the properties, it comes out as £446K, but the market value is closer to £300K - a significant difference - so I'd be significantly over insuring it seems, with the associated rise in premium - thoughts please?

Ta

 

[craigholt]

Does the surveyors report you refer to not quote the reinstatement cost? That is pretty standard on most reports.

Where a market value is lower than a rebuild cost, that would usually be an older property, so things like slate and other specific materials will simply cost more.

 

[wessie]

I believe the postcode is also a factor in rebuild costs due to variations across regions

many underwriters, effectively, do not set an upper limit on the policy by having a six figure sum for rebuilding a 2 bed semi-detached house, so get one of these policies

the rebuild cost for a house in somewhere like TS1 (Middlesborough) will definitely exceed the market value so the generalisation in your last paragraph is bollocks.

 

[developer]

Does the surveyors report you refer to not quote the reinstatement cost? That is pretty standard on most reports.

Yes, but it was a survey from 1995 - the reinstatement costs will have changed, but not the property dimensions.

Where a market value is lower than a rebuild cost, that would usually be an older property, so things like slate and other specific materials will simply cost more.

 

[developer]

I believe the postcode is also a factor in rebuild costs due to variations across regions

many underwriters, effectively, do not set an upper limit on the policy by having a six figure sum for rebuilding a 2 bed semi-detached house, so get one of these policies

However, an AXA £1m rebuild cover policy still asks for a rebuild cost, and I tested it at £250K then £350K and the premium rose, so you still need to know an accurate rebuild cost.

the rebuild cost for a house in somewhere like TS1 (Middlesborough) will definitely exceed the market value so the generalisation in your last paragraph is bollocks.

 

[craigholt]

Yes, but it was a survey from 1995 - the reinstatement costs will have changed, but not the property dimensions.

Fair enough.

If you can't get help here and you're aim is to save money, then it may cost to get expert advice, but possibly worth it long term. Let's hope someone can help.

Alternatively, the BCIS is the currently recognised standard. I'm sure it's free, however, think you need to register. Hope that helps.

BCIS Public Rebuild Calculator

 

[malcopopolo]

Do the rebuild costs include - demolition?

 

[craigholt]

Do the rebuild costs include - demolition?

They usually include everything associated with rebuilding a house including fees etc., but depends which resource is used. For insurance purposes, which is the usual requirement, the costs assume a house is onsite, so demolition is inclusive.