10:45 AM, 27th February 2023, About A year ago 17
Landlords – How do you calculate your properties’ rebuild value when your insurance is due for renewal? For those who don’t know, the rebuild cost is the amount it would cost to completely rebuild your property if it was destroyed beyond repair. It includes the price of labour and materials. This cost is usually lower than your property’s sale price or market value.
Ensuring an accurate rebuild cost will prevent you from over-insuring and paying higher premiums than necessary (or possibly under-insuring and not having enough to rebuild in the worst-case scenario!)
Personally, I make use of the Building Cost Information Service calculator (https://abi.bcis.co.uk/) to review my rebuild costs. Normally, you would expect this to give a cost less than the market value, but THIS year I’ve got back rebuild costs all higher than the current market value. I know building costs have risen dramatically, but this is despite all my properties having increased in market value by around 80% in the last 4 years.
Has anyone else experienced this?
If this IS the new normal, I couldn’t help but think that arson might become the new S21 in landlord land…
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