How Much Buildings Cover Do I Need?

You'll need to insure for the total rebuilding cost - what it would cost to rebuild your home from scratch if, for example, it were destroyed in a gas explosion or burnt to rubble. Rebuilding costs are based on the size of the property and are not the same as the market value of your property. This is partly because even if your property were to be demolished, you would still own the land. Don't insure for market value.

Although it's rare for anyone to have to claim the total amount, if you don't insure for total rebuilding costs you'll be under-insured and any claim you submit is likely to be scaled down in proportion to the level of under-insurance.

If you have a mortgage, the lender's valuer will usually provide a sum to insure. If you need to work out rebuilding costs yourself, you can get a leaflet from the Association of British Insurers. Alternatively, you could pay for a quotation from a qualified surveyor, such as a member of the Royal Institution of Chartered Surveyors (RICS).

It's worth remembering that after some years your original sum insured could be out of date. For example, it may not have been correctly updated each year to match rebuilding cost inflation in your part of the country or you may have carried out major building works such as an extension or loft conversion. It's therefore important that you re-assess the sum insured from time to time.