Are you over insured or under insured? Building insurance is something that we all hope we never have to claim on. But if you do ever need to claim, you need to be sure that you are insured for the right amount. So how do you know how much your property should be insured for?
There are a number of websites that will give you a free basic calculation based on floor area. We believe the best free website is www.abi.bcis.co.uk
The website asks for some basic information about your home and returns a figure for insurance. You should be aware however that this makes a number of assumptions including the quality, building complexity and peripherals (such as patios, outbuildings, fencing, drainage etc.)
There are also other factors that may increase the sum insured. Is the property on a slope? How much drainage is there or is there a septic tank? Are there additional chimneys? These are just a small sample of factors that we take into account in addition to those using the free models.
This is important because if you are 25% under insured, your insurance company may only pay 75% of the claim, which in a claim relating to structural problems or fire could be £50,000-£100,000 or more.
A professional assessment for rebuilding purposes will give you the peace of mind that you are properly insured. Prices start at £100 +VAT.
The following is an extract from the Association of British Insurers website:
“It is stressed that the calculator is intended for checking sums insured and is no substitute for professional advice and judgment, particularly where a property has any unusual features or is outside the range of properties described.
If the rebuilding cost from the calculator is markedly different from your current sum insured, contact your insurance company, broker or a local chartered surveyor.
Professional advice can be obtained from a chartered surveyor”