House Insurance - rebuilding costs query.

[mustgetalife]

My buildings and contents insurance are due for renewal in the next fortnight. I've had a quote come through and I just wanted to know how they work out the costs of rebuilding. I thought the rebuilding costs didn't actually represent the actual house price market value.

Are these prices just appearing from thin air? Householders never seem to be told how to work out what exactly they should be covering themselves for. I would hate to just accept a figure as being okay, and then find that I wasn't adequately covered should my house need extensive work.

[Ethel]

No - the prices don't appear from thin air. Rebuilding cost does not reflect market value - the land your house stands on has a value.

There is informed information and a guide to calculation rebuilding costs of your own home here:

http://www.moneysupermarket.com/home/Buildings AndContents.aspx

Some insurers simply guarantee to rebuild your home, and don't give a rebuild figure.

[mustgetalife]

Many thanks for your speedy reply. It looks a bit complicated so I'll have to work out the square metres of the area of the house first and take it from there. Thanks for the link.