Many people think that a rebuild value is related to the market value of their property; however there is no mutual relationship between the market value and the rebuild value.

For example, a property in central London may have a market value of £1,000,000+ but the rebuild value of the property could be just over £100,000. A similar property outside of London could have a market value of £120,000 but may have a similar rebuild value of £100,000 to the London property.

When a valuation is carried out on a property by a surveyor, they will normally give two figures which is a market valuation and a rebuild value.  The rebuild value can usually be found on the valuation report or mortgage survey.

If one of these figures is not available there are a number of online rebuild calculators that can be used to get a round about figure.  We found one at the The Building Cost Information Service (BCIS) of the Royal Institution of Chartered Surveyors (RICS) that may be useful if you’re trying to find out your rebuild value.

Benefits of Using a Rebuild Cost Calculator

  • You can use it to check that your buildings insurance amount still covers the rebuild cost – you can use this for personal and business premises
  • You can get a rough idea of your home or business premises rebuild cost so you don’t end up paying any shortfall.
  • It’s free and easy to use

You only need to insure your home or business premises for its rebuild cost, however, you need to be careful that the rebuild value is correct. If you underinsure and your home requires a rebuild then you would only be covered for the rebuild amount. Anything more than this would be a cost you would incur yourself.

Have you checked your rebuild value is correct and are the details correct within your insurance documents?