The rebuild cost is the amount it would cost to completely rebuild your home if it was destroyed beyond repair. It includes the price of labour and materials. This cost is usually lower than your home's sale price or market value. Basing your policy on your home’s rebuild cost will prevent you from over-insuring and paying higher premiums than necessary.
If your home is made of non-standard materials (not brick-built) or has specialist architectural features, its rebuild cost may be higher than its market value. In this case, insure your home against the higher rebuild cost not the lower sale price or market value to avoid any insurance shortfalls.
Calculating your rebuild cost
If you own a standard, brick-built home there are two ways to calculate your rebuild cost:
- use the Building Cost Information Service’s house rebuilding cost calculator
- hire a chartered surveyor to carry out a professional assessment
If your home is made from non-standard materials, has special architectural features, or if you live in a listed building contact a chartered surveyor for advice.
To find out if you live in a listed building go to the relevant website for your country:
- English Heritage (England)
- Historic Scotland (Scotland)
- Cadw (Wales)
- Northern Ireland Environment Agency (Northern Ireland)
To find a chartered surveyor go to the Royal Institution of Chartered Surveyors website.
If you have recently bought your home the rebuild cost will be on your mortgage valuation or deeds.
Your rebuild cost should include any professional fees associated with rebuilding and the cost of clearing the site.
- use the Building Cost Information Service’s house rebuilding cost calculator or contact a chartered surveyor through the Royal Institution of Chartered Surveyors
- review the rebuild cost of your home each time you renew your insurance
- if you renovate your home or build an extension, recalculate the rebuild cost and speak to your insurer to make sure you are fully covered