House Insurance - Rebuild Values

Discussion in 'UK Finance' started by JaffaB, Jan 24, 2008.

  1. JaffaB

    JaffaB Guest

    Can I ask how others on this group get house insurance? The part I am
    interested in, is the question (or box if it’s a web site quote thing)
    of “REBUILD VALUE”. I know how much my house is worth, how much I
    paid for it etc, but I am not a building engineer, I don’t know if in
    the event of a fire, they would employee British or Polish Builders,
    what the cost of a brick is, how many people etc – so how do I know
    what the rebuild value is?

    There are rebuild calculation web sites that suggest to you values,
    but I tried three and all three gave different figures (with massive
    differences) and have nice boxes for amount to “add for rebuild of
    garage” and other such questions – how do I know what?

    So what happens if I pull a number out of thin air, and my house burns
    down. If my number is wrong, do they only build me 90% of a new
    house?


    Regards

    John
     
    JaffaB, Jan 24, 2008
    #1
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  2. JaffaB

    Toom Tabard Guest

    Ask the insurer. Some policies specifically say that if there is an
    undervalue then all that happens is you pay the premium difference in
    event of a claim. I think older Direct Line policies say this. Under
    their newer policy you don't have to bother, you are automatically
    covered up to a rather generous maximum (I think £1 million with
    Direct Line). All things being equal, you could choose and insurer
    with such a maximum then you don't need to bother with value and
    annual adjustments.

    Toom
     
    Toom Tabard, Jan 24, 2008
    #2
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  3. JaffaB

    Roger Mills Guest

    In an earlier contribution to this discussion,

    I always use the calculator at http://abi.bcis.co.uk/ and hope that it's
    about right!

    The *most* an insurance company will pay out is the rebuilding cost
    specified in your policy schedule. If this is too low, you risk having to
    pick up part of the bill youself. If it's too high, the insurance company
    will only pay the *actual* rebuilding cost and you will have paid over the
    odds with your premium. It's your call!

    If you're unsure, why not commission a Chartered Surveyor to carry out a
    rebuilding cost assessment for you?
    --
    Cheers,
    Roger
    ______
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    monitored.. Messages sent to it may not be read for several weeks.
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    Roger Mills, Jan 24, 2008
    #3
  4. JaffaB

    Roger Mills Guest

    In an earlier contribution to this discussion,
    I've not come across this, and would be surprised if it were true. It would
    be akin to increasing your stake on a horse *after* it had won!

    I've seen contents policies with a fairly high limit, based on number of
    bedrooms - but are you sure that there are buildings policies which do this?
    --
    Cheers,
    Roger
    ______
    Email address maintained for newsgroup use only, and not regularly
    monitored.. Messages sent to it may not be read for several weeks.
    PLEASE REPLY TO NEWSGROUP!
     
    Roger Mills, Jan 24, 2008
    #4
  5. JaffaB

    ®i©ardo Guest


    Have a look at this one:

    http://www.greenbee.com/webapp/wcs/...entCategoryId=16&categoryId=272&track=jlpages

    It claims to give "unlimited" buildings and contents cover. To quote
    from the policy wording:

    "The insurance provides unlimited cover for the total rebuilding cost of
    your property and/or contents for the cost of repairing or replacing the
    contents of your home, but single article and valuable limits apply. It
    will also include accidental damage on your buildings and/or contents
    unless you choose to opt out of this cover."

    Accidental damage cover is included as standard - this is for the foot
    through the ceiling type of thing which would not normally be covered.

    Compared with my current insurers I would save about £200 by moving to
    Greenbee.
     
    ®i©ardo, Jan 24, 2008
    #5
  6. JaffaB

    Tim Guest

    Are you sure? If that is true, doesn't everyone simply say:
    "Rebuild value = £1 only" and then still enjoy full insurance
    (less underpaid premiums) for a negligible running premium?
     
    Tim, Jan 24, 2008
    #6
  7. JaffaB

    Toom Tabard Guest

    On re-reading, it is ambiguous, but my impression at the time was that
    it was to accommodate the difficulty of keeping the correct value
    updated. I assume from the type and location of the property they can
    assess whether the original declared value is reasonable
    Direct Line - 2005 -
    "Buildings Insurance - Basis of claims settlement - The most we will
    pay for any one claim will be the total sum insured.
    Buildings Insurance - Premium adjustment - The premium for this
    section is based on the estimated rebuilding cost of the buildings
    calculated from information provided by you. ..... If it is
    established that the cost of completely rebuilding the buildings as
    new ..... is greater than the sum insured adjusted for index linking
    then the sum insured will be increased to such rebuilding cost and an
    additional premium may be payable"
    Direct Line, 2007, quotes for buildings don't consider or require
    individual value if the property is worth less tha £1 million and
    schedule gives cover for a sum insured of £1 million

    Toom
     
    Toom Tabard, Jan 25, 2008
    #7
  8. But it does *not* say "in the event of a claim".
     
    Alec McKenzie, Jan 25, 2008
    #8
  9. JaffaB

    Toom Tabard Guest

    It will allow for an understandable and reasonable undervalue. I
    assume from the property type, location, number of bedrooms etc, they
    can assess if the sum you propose is reasonable. You are also, when
    completing an insurance proposal making a declaration that the
    information you provide is correct. Premiums might also allow a
    generous margin . My car insurance gives me cover for a generic market
    value of up to £30,0000 - the value of my current car is about £2,000

    Toom

    Toom
     
    Toom Tabard, Jan 25, 2008
    #9
  10. JaffaB

    Roger Mills Guest

    In an earlier contribution to this discussion,
    But surely the premium adjustment bit applies at renewal time - not when a
    claim is made? They look like two separate paragraphs describing two
    different aspects of the policy. The claims bit is explicit in saying "The
    most we will pay for any one claim will be the total sum insured". Nothing
    ambiguous about that!


    Presumably with a price tag to match?
    --
    Cheers,
    Roger
    ______
    Email address maintained for newsgroup use only, and not regularly
    monitored.. Messages sent to it may not be read for several weeks.
    PLEASE REPLY TO NEWSGROUP!
     
    Roger Mills, Jan 25, 2008
    #10
  11. JaffaB

    Toom Tabard Guest

    As I say, there is some ambiguity - but when normally would the cost
    of completely rebuilding the buildings as new be accurately
    established other than in a claim. And you couldn't put in that
    wording and then just declare after a claim that it didn't apply in
    these circumstances. You'd have to specifically state that in the
    wording, otherwise the wording is legally intepreted in its full
    meaning without qualification.
    No, actually very competitive, especially if instead of renewing you
    become a new customer each year with introductory discounts. My
    previous policy with them had crept up to £300+ for house and contents
    with buildings cover of about £250,000. New cover was £106 for up to
    £1 million. The price tag will reflect an average value of much less
    than £1 million.

    Toom
     
    Toom Tabard, Jan 25, 2008
    #11
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