We have a 1990s-designed detached house. It is built to the building standards of that time, with some small heating and insulation improvements over the years.
Is the market value of my home the same as the rebuilding cost of my home?
Reinstatement costs to rebuild your home must take account of current building regulations.
If your property is destroyed the new building must meet the current standards at the time of rebuilding.
You should also make sure your home is insured on a "total loss" scenario. This assumes that the house is destroyed, has to be demolished, site cleared and then completely rebuilt.
The amount should allow for complete replacement of everything, the house, footpaths, parking etc, and should include VAT. As well as the cost of rebuilding, professional fees should be included.
I suggest that you use the Society of Chartered Surveyors Guide to House Rebuilding Costs for Insurance Purposes. This guide is intended to assist you in insuring your home and briefly explains the more important aspects of house insurance.
The SCSI website also has a table to assist in calculating the correct amount for typical houses in various parts of the country.
The sum insured should be increased if you have installed a top of the range kitchen, for example. Any other non-standard finishes should also be taken into account.
With building cost inflation continually increasing, it is important to make sure that your reinstatement valuation is correct. The market value of your property has no bearing on the level of house insurance required.
Remember that all insurance policies differ, some covering more than others. Examine your policy very carefully to make sure you are insuring for the correct amount.
To find a local chartered surveyor who can assist on this matter, use the "find an expert" search at scsi.ie
We all have insurance out of necessity, with the hope that we never have to use it, but if the day comes that you do need to use it, it is important that you have the correct level of cover.
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