Calculating the rebuild or reinstatement value on your principle place of residency or investment property is very important for many reasons.

If it is deemed the property has been under insured then insurance companies will typically apply “averaging” to the settlement figure. This can mean for someone who is 40% under insured and final settlement cheque being reduced down by 40%.

Example:

Landlord has escape of water claim from frozen pipes and there is £25,000 damage and during investigations it was found the property should have a reinstatement value of £200,000 and not the £120,00  given when placed on risk.  The insurance company will typically send a settlement cheque of £15,000 – some £10,000 short!

The best ways to confirm the correct rebuild or reinstatement value include:-

  • Building Surveyor
  • ABI Rebuild Calculator - http://abi.bcis.co.uk/
  • Recent Mortgage Valuation Report Detailing Reinstatement Value
  • A Recent Insurance Renewal Document Detailing Rebuild Value
The above are in the order of the safest ways to secure the correct rebuild values so any potential claims should be settled in full