How to work out the rebuild cost of your home

The rebuild cost of your home is the amount of money it would cost to completely rebuild the property if it suffered significant damage or was destroyed beyond reasonable repair. 

This will include the cost of the labour, materials used and professional fees (such as architect fees). The rebuild cost is usually lower than the sale price of your home or market value as the land is already owned.  

The cost of the rebuild will be higher if your home is constructed from non-standard materials (not brick built, for example) or has special architectural features on it, so make sure you have an accurate rebuild figure. 

You’ll need to know the rebuild cost of your home when it comes to buying buildings insurance. This is because you need to have an accurate figure to help prevent you from under or over insuring your house. This is important because should anything unfortunate happen to your home that requires a rebuild, you might end up being left to cover the difference in costs. An accurate rebuild cost will also mean that your buildings insurance provider is able to cover all of the costs from the rebuild.

The difference in the rebuild cost and the market value is primarily that the rebuilding cost is not influenced by any geographical factor that is related to your property. The rebuild cost of your home is not the same as the price you could expect to sell it for - it’s the price it will cost you to construct it again to the same standard.

Rebuild cost of your home

The rebuild cost can be broken down by many factors but the two main factors that will take up a large sum of the cost will be - the cost of materials and the cost of labour to build a house that is identical to yours. 

The best way for you to get an accurate costing would be to book an appointment with a surveyor. They will carry out detailed measurements of the house and prepare it for a professional Rebuilding Cost Assessment.

If you have recently purchased a new property or re-mortgaged your property, the survey conducted will usually state the rebuild cost.

Another option for you is to use a rebuild cost calculator, which you can find online. Before you use one of these you need to know the external floor area of both upstairs and downstairs of your property - if applicable. 

This will give you the rebuilding cost per square metre. If the upstairs space is the same as downstairs, double the ground floor area. If it is different, calculate the upstairs area and add it to the downstairs result. Afterwards, go outside and measure the length and width of the ground floor walls and multiply the two figures together. 

It’s important that you notify your home insurer of any changes you make to your property so that you have the correct level of buildings cover for your home.

If you’ve made improvements to your home - perhaps added an extension or had a loft conversion - then the rebuild cost of this work will also need to be considered. If you’ve had the same figure for a rebuild cost for several years and have had an extension, bear this in mind. You’ll need to update the amount to cover for the improvements.

Getting an accurate rebuild cost of your house or property is important to make sure you’re properly covered if the worst happens. Don’t be intimidated by what might seem like a difficult task - help is at hand should you need it.

For peace of mind knowing that your building is covered, click here and get a quote today with RAC Home Insurance.

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