Calculating rebuild costs


Share on Twitter Share on Facebook Google plus Email

You'll have probably noticed when getting home insurance quotes you're asked about the rebuild cost - we explain why

When buying home insurance you need to declare the rebuild cost of your property, no need to worry about how to do it we can help you figure it out.

Why do you need to know the rebuild cost?

Knowing the rebuild cost of your property is very important when shopping for home insurance. An inaccurate estimate may lead to you paying more for your buildings insurance than is necessary.

Also an accurate rebuild cost means your buildings insurance provider will be able to cover all of the costs should your home need to be rebuilt from the ground up and avoids the risk of you having to cover any shortfalls in the estimate.

What is the rebuild cost of my property?

The rebuild cost is the amount of money required to reconstruct your home from the foundations up should the worst happen.

It can be broken down into two main factors; the cost of materials and the associated cost of labour to build a house identical to yours on the land that you own.

How do I calculate it?

If you’ve visited the Admiral website to get a quote, you may have noticed that the rebuild cost is already calculated in most circumstances. Through a partnership with the Royal Institute of Chartered Surveyors (RICS), Admiral is able to provide an estimate of the rebuild cost of your property using some of your information.

The type of property, the location of your property and the construction materials of your home all help to calculate the rebuild figure. It’s important you’re able to provide a rebuild cost which is as accurate as possible. This ensures you’re not over or under-paying for your home insurance.

Furthermore, if the actual rebuild cost is higher than the figure provided during the quote, your insurer will not be liable for the remaining difference.

My property has recently undergone a renovation, should I update my rebuild cost?

If you’ve recently converted your property this will also need to be factored into the rebuild cost, something the RICS estimate may not include.

Therefore, it’s recommended you either use the Rebuild Cost Calculator from RICS or seek a local surveyor via the RICS Firms site who, for a fee, will provide an accurate rebuild cost of your home.

It’s important your home insurer is notified of any updates in the rebuild cost of your property so you have the right level of buildings cover for your home.

Why is the rebuild cost different from the market value of my home?

The key difference between the rebuild cost of your home and its market value is the rebuild cost is not influenced by geographical factors related to your property. Factors such as market supply and demand, school catchment area etc don’t influence the cost of rebuild but will impact the market value of your home.

I live in a flat, how do I calculate my rebuild cost?

Flats and maisonettes are constructed differently to houses so if you live in either, it would be best to call out a surveyor for an accurate valuation.

It’s worth noting that these properties are often occupied on lease so it’s likely your building owner will already have buildings insurance in place, which is typically included in the service charges of your lease.

You can find more information on rebuild costs on the RICS website.

Share with your friends

Home Insurance

Combined cover with prices from just £97

10% of Admiral level Buildings and Contents customers from December 2015 to June 2016 paid less than £97.


out of 10

Read 4,188 reviews

Tell us what you think