9th June 2021

Is your home adequately insured?

Underinsured buildings are covered for just 63% of the correct rebuild cost on average*

Many homeowners mistakenly insure their property based on its market value, not the actual cost to rebuild.

Buildings should always be insured for the amount it would cost to rebuild them. This should include outbuildings, walls, paths, fees, materials, labour and VAT if applicable.

However, fewer than one in ten household properties in the UK are covered correctly.

If you are under-insured, you face a reduced pay-out in the event of a claim. Insurance claims can be reduced by hundreds of thousands of pounds due to under-insurance. If you are over-insured, you are probably paying too much for your buildings insurance.

Is your home adequately insured?

When you purchase a home, a survey by the mortgage company and / or a surveyor will provide you with a rebuild figure, but year-on-year this changes.

Many insurers index link the building sum insured at each renewal but over time this could be incorrect.

An extension or internal modernisation – such as a new kitchen or bathroom – will also affect the rebuild.

Some policies offer blanket sums insured, however, it is still worth ensuring that limit is sufficient for your property.

What are your options?

The rebuild of your home varies depending on a number of factors including the property’s location, age, size and building type.

Whilst online calculators can help provide a guesstimate, they aren’t necessarily accurate and can often provide an incorrect figure.

We can help to arrange a buildings survey from as little as £149. If you want to discuss this further, please contact us.

*RebuildCostASSESSMENT.com survey based on 3,000 UK properties

Want to know more?

To discuss your specific insurance needs get in touch and we will be pleased to help.
Find out more

W B Baxter Ltd,
263 Cranbrook Road,
Ilford, Essex,

Copyright @ 2023 W B Baxter Ltd.
W B Baxter Ltd is authorised and regulated by the Financial Conduct Authority (FCA). Company Registration Number: 277519 | FCA Registration Number: 146480. If you have a complaint or dispute with us and are unable to resolve this to your satisfaction, we are obliged to offer you the Financial Ombudsman Service to help resolve this, please see the following link for further details: financial-ombudsman.org.uk