Calculating Rebuilding Cost

If you want to make sure you"re paying for the correct amount for landlords building insurance cover, you"ll 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 surveyor"s report. If you"re buying a property, the lender"s 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.

You can calculate your re-build cost online, visit the ABI (Association of British Insurers) website by clicking here. (Scroll to bottom of page for their free calculator - you'll need your 'total floor area' calculation from step 3)

Click here for a Landlords insurance quote

Posted by Holly on 01/04/2007