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A Question About Household Insurance.

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10 minutes ago, pattricia said:

Thank you for your sensible advice.

You're very welcome, good luck 😊

3 hours ago, ab6262 said:

find out what your house is likely to be worth on zoopla, you can adjust this yourself to suit if you have made alterations, then add a further 50% which is a good guide to rebuild etc for insurers.

This approach is just wrong, rebuilding cost is not related in any way to market value for the reasons  I explained earlier on, and using this as a basis could put you in some bother.  It could be much  higher or lower than market value so you could be wasting premium money on over insuring or taking some risk if under insuring.

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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.

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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.

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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.

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