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Landlords Insurance - rebuild value


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A newbie here, hope somebody can help?

I need to renew my buildings insurance, plus I want to add in rent guarantee insurance this time too. Looking back at last year's buildings insurance, the "rebuild value" is actually more than the market value that the property is worth - which I gather is wrong as it should be about 60-70% of the market value!

Anyhow, I've looked back on the mortgage documents, and have found a rebuild value which is about the same as the market value. I tried to call the mortgage company, but got a call centre where the guy just couldn't understand me.

So I gues my question is, do I have to use this number given as information in the mortgage documentation? Or can I just use 70% of the market value?

Any recommendations on where to find insurance would also be most welcome!



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The Association of British Insurers have an online calculator here that will provide a rough estimate by taking certain information about your property from you. It is what it is though, an ESTIMATE. The ONLY accurate way to obtain the correct rebuilding cost of your property is to get an up to date building survey.

Please do not make the common mistake of assuming the rebuilding cost has any correlation to the market value. Don't worry, you are not the minority - as a landlord insurer ourselves we hear this situation everyday. Imagine if you were to pick up your house and put it next to Buckingham Palace it will still cost the same to rebuild but will have a considerably higher market value! In some circumstances I've heard the rebuild cost to be more than the market value just simply because of its location.

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