Last month we looked at the difficulties associated with filling in online forms in order to get an insurance quote. The danger is that you’ll go down the list, quickly ticking the boxes that come closest to what you think is the case in order to obtain a quote you can base a decision on.
Often there are questions that very few people know the answer to immediately and rather than undertake the necessary research to find out the correct answer it is easier to just tick a box and move on without thinking about it.
The problem with this ‘box ticking’ is that the questions you skip through without considering them may well make a significant difference to the price you’re quoted. At worst, doing this may mean your policy is invalid when you need to claim on it, and all the money you’ve been paying has been for nothing.
A typical question you’re likely to be asked on an online insurance form for landlords insurance is the rebuild cost of your house. This isn’t something that most people would know off the top of their head. It isn’t the same as market value; it’s usually lower, but not always, as there are many factors that could affect it. However, it’s important that you get it right, as this is what your building insurance premium and cover is largely based upon. Overestimate and you could end up paying higher premiums than you need to; underestimate and the payout on your insurance when you need it could be significantly less than you require.
The rebuild value is the cost of a complete rebuild of your property in the event of a fire, flood or another devastating event. It’s usually lower than the market value because it doesn’t include the value of the land; however, the rebuild value might be higher if the property is a listed building or includes unique architectural features that are hard to replace. If these include stone or other materials not available locally then that will also add to the cost.
The rebuild value may be listed on the deeds of the property, but be aware that it will change over time if you make improvements or add an extension for instance. A complete rebuild will also need to include the cost of demolition and land clearance. A good guide for working out your rebuild costs is the Building Cost Information Service (BCIS) who have a guide to calculating your rebuild costs. Check that out here.
As always, the best policy is to consult a reputable broker like Alan Boswell Group who can help you work out your requirements and then search the market for the best and most appropriate deals.