About rebuilding costs
Rebuilding
costs are not the same as the market value of your home.
Often they're less than half - for example they
don't include the cost of the land. You'll overpay if you
get this wrong. But if you underestimate it you're
in big trouble.
Ask your insurer's advice about this. The Association
of British Insurers have a useful booklet called "House
rebuilding costs". Tel 020 7600 3333. Don't
get this wrong.
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How much to insure your contents for
Don't
underinsure your contents and possesions. Even old
furntiure etc will be expensive to replace. Too many of
us regret having miscalculated when it comes to having to
buy new things and finding how much we should have insured
for.
Go
through each room and list what you have. Be realistic
about the replacement costs.
For
high value items, antiques etc Get an independent
evaluation.
Be
wary of "blanket cover" packages which
some insurers offer. These are based on the number of rooms.
You may end up paying more than necessary.
Shop
around for better quotes than your lender's offering
and you could save thousands.
Basically
as with all types of insurance: don't underinsure,
don't overinsure and only get insurance that's
relevant to your needs.
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