High Value Buildings Insurance for a High Value Home in the UK
In this article we will look at high value buildings insurance in the UK, what buildings insurance figure you should be using, how to obtain this figure and what it should include.Any home with a re-building cost of £250,000 or more qualifies for enhanced building insurance cover from specialist insurers of high value homes. To discuss how you might obtain high value building insurance without breaking the bank, please call Geoff Moss on 01242 699113.
Firstly, a very common misconception is that you should insure your home for the current market value. In fact, you should be insuring the property for its re-building cost. There is no direct correlation between the two.
In short, you should take out a specialist home insurance policy on your high value home for the total cost of rebuilding the structure as if it were razed to the ground. Most high value building insurances coverage should include materials, labour, clearance of the site, and fees to architects, surveyors and consulting engineers. If you own a listed building, you should almost certainly take out a high value listed buildings insurance policy for the specialist service and knowledge you will require in the event of a substantial claim.
Most homeowners do not know the re-building cost of their homes, so opt for the market value, which is often much higher. This will result in to paying a higher insurance premium than is necessary. There are three mains ways to identify the re-building cost of your home:
If you have a mortgage on the property, the "valuation" surveyor would have calculated the rebuilding cost as part of his report to the lender.
You can commission a professional surveyor to calculate it for you. The Royal Institute of Chartered Surveyors has a list of approved surveyors at near to you at www.ricsfirms.com.
You can calculate the re-building cost yourself, providing that your home is fairly "standard," by using the calculator provided by the Association of British Insurers at www.abi.bcis.co.uk
As well as the main structure you should also include outbuildings such as garages, sheds, stables and other permanent structures, plus any swimming pools, tennis courts, hot tubs, patios, driveways, underground services and pipes, terraces, fences, gates, bridges, decking, full tanks, permanent gazebos or pergolas. In fact, plan on including any permanent structure or supply facility.
Internally, you should include fitted kitchens, bathrooms and other permanent fixtures that are an integral part of your home (ward robes and cupboards), or special features such as fireplaces or murals. Be sure to investigate the possibility of obtaining high value contents insurance if the items contained in your home exceed what would be a usual cover amount. Home contents insurance is a must in the case of art or antique collections or vintage or historical furniture.
It is not just the very affluent who would benefit from a high value buildings insurance policy, but also those who have acquired a comfortable home and lifestyle that is worth protecting with a superior home insurance policy in the UK.
