A Question About Household Insurance.

[Jeffrey Shaw 90]

On 17/09/2021 at 22:45, pattricia said:

Thank you for your advice Jeffrey. Also how do you insure the house itself ? Do you go on what the house would cost to rebuild or what the selling price of your house is in your area ?

That depends on the insurance company.  It's always best to obtain a proper (independent) valuation for insurance purposes.

But generally I'd opt for reinstatement value, as long as that seems to accord with the insurance proposal form's questions.

Sadly, nowadays, the reinstatement value is often far short of the ludicrously-inflated open market value.

[pattricia 579]

16 hours ago, Jeffrey Shaw said:

That depends on the insurance company.  It's always best to obtain a proper (independent) valuation for insurance purposes.

But generally I'd opt for reinstatement value, as long as that seems to accord with the insurance proposal form's questions.

Sadly, nowadays, the reinstatement value is often far short of the ludicrously-inflated open market value.

Thank you Jeffrey. I always take notice of your advice.

[dan2802 53]

As the above posters have said, market value is completely different to rebuild cost.

The rebuild cost would be the same if the property was in Page Hall or Dore but the market value of identical properties wouldn't be the same.