Buildings insurance should cover the full cost of rebuilding your property if it were destroyed. That figure, the reinstatement cost, is not the same as what the property would sell for.
Why the right figure matters
If the sum insured is too low, many policies apply an "average" clause: if you are insured for 70% of the true rebuild cost, a claim may be cut to 70% too. If it is too high, you pay more premium than you need to.
Online calculators and old figures rolled forward often miss what makes a building expensive to rebuild. Stone walls, slate roofs, listed buildings, outbuildings and difficult access in rural West Wales can all push the cost well above a standard estimate.
What the assessment covers
- Demolition and clearing the site
- Rebuilding to the same size and in matching materials
- Professional fees, such as architects and surveyors
- Meeting current Building Regulations and planning requirements
- Outbuildings, boundary walls and external works where needed
The cost of the land is not included, because the land is not lost if the building is destroyed.
Who it is for
- Homeowners and landlords checking their buildings insurance
- Owners of period, listed and traditional stone properties
- Farms, holiday lets and commercial buildings
- Blocks of flats, where the freeholder or management company insures the building
We carry out reinstatement cost assessments following RICS guidance. If you are buying a home, our Level 2 Survey and Valuation already includes an insurance reinstatement figure.
Common questions
Is the rebuild cost the same as the market value?
No. It is the cost to rebuild the property from scratch, which can be well above or below what it would sell for.
What happens if my property is under-insured?
Many policies reduce a claim in proportion to the shortfall, so even a small claim can be cut. An accurate rebuild figure avoids this.
How often should the figure be checked?
Every few years, or after an extension or major alterations, as building costs change.