Negotiation, Negotiation, Negotiation

UK Property Investment news and comments from Mark Harrison of YourPropertyExpert.com

How much should your investment property be insured for?

Posted by markharrison on November 15, 2007

One of the most annoying things about insurance (I’m speaking as a property investor here) is that box that says “estimated rebuild cost.”

Now, I have a fairly astute idea of how much it would cost to re-carpet a room, re-paint a room, fit a new kitchen, add a conservatory or for that matter convert a loft into an extra bedroom (or two!) but re-building? I’ve never needed to do that.

Fortunately, to the rescue comes the BCIS, who have a “estimated rebuilding cost” calculator. It asks a few basic questions like “how many square feet is your house”, and “where in the country do you live”… and then comes up with an estimate.

Before you look, though, the following part of the RICS notes about it is important:

The guidance figures provided are based on specific examples of houses of average quality, built using standard construction methods. However they are not applicable to:

  • flats
  • properties built of stone or materials other than brick
  • properties with more than two storeys or with basements and cellars
  • houses with special design features, historic or listed buildings, or houses which are larger than the examples
  • houses other than of average quality.

As an individual investor, of course, you seldom have to insure a flat – normally the management company (which admittedly, you might part-own) will do that, not the indivdual flat owner.

Obviously, if you actually needed work done, it may be worth hiring a proper surveyor, or even an architect,  to give a specific estimate of the costs, but that’s probably overkill for finding out the one number to type into the insurance system.

You can find the calculator here

One Response to “How much should your investment property be insured for?”

  1. Yes, There are many things to consider to get our investment property insured and one of the most annoying things about insurance is the estimated rebuild cost.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: