Cost of Rebuilding Home

[clarahenders]

When applying for building insurance, you're asked to value the cost of rebuilding your home. How do you work this out? My survey report costs this as a little bit more than what i paid for my flat. This doesnt seem much, as i live in a 6 flat B-listed building from pre 1800s. What if i was responsible through my own fault, for the cost of rebuilding the whole block? this would be close to a million pounds!! Do i go with the surveyors valuation?

[buildersmate]

For many houses the cost of rebuilding is far less than what you paid for it. This is particularly true in the south of the country and city centres. The reason is in the cost of the land - which of course is never destroyed, but which can be a large proportion of the value of a house.
If you click on the link below, it will take you to a calculator run in conjunction with the Association of British Insurers (ABI).
http://calculator.bcis.co.uk/index.cfm#calcula tion

[buildersmate]

Actually having looked again at the model, it doesn't cover flats - sorry about that. Best to speak to your broker perhaps.

[redcrx]

how come youre paying for your own buildings insurance? Surely this is set up for thw whole building and split between the 6 flats?

[themas]

There is something wrong here! You cannot have a buildings insurance on just one flat in a block of 6. The building has to be insured as a whole and the management company or the freeholder is reponsible for doing it. They then allocate the cost to the various flat owners. You should make sure this has been done and make sure you see a copy of the policy and make sure it is renewed each year.

[clarahenders]

Well, that would make sense themas, but i have workmates and friends who live in flats and they all pay out individual building insurance. No-one seems to have heard of or experienced any other way of doing it.
I'm in scotland, maybe its different here?

[redcrx]

ok, if that is the case, whose insurer would pay out if the building started to subside or there was a fire in the communal area?

are you sure that youre not paying out a second time for something thats not needed?

[themas]

I don't know whether it is different in Scotland (my answer related to England & Wales) but, as redcrx says, how would you sort out who claims what if each flat owner has their own buildings insurance?

If I was in your position I would want to know exactly what the position is and would look in detail at all the relevant documents of title and, if necessary, speak to the solicitor who did the conveyancing to get clarification.

Going back to your original question, I do not see how you can work out the cost of rebuilding your home unless it is done by estimating the cost of rebuilding the whole block & dividing it by the number of flats. Again, you need to get clarification of this. Your last point, about something you do causing the whole block to need rebuilding, ought to be covered by the insurance under a section concerning public liability for negligence which normally has a very high limit. (However, this also may be different in Scotland!)

[ladylovebug]

based on a national survey its on avarage 1/3 of the market value of the property to rebuild , and yes u can insure 1 flat in a block if you are the owner, some property's do however include this in a service charge