How To Reduce The Cost Of Buildings Insurance

By Author: Deshawn Chillo
Total Articles: 8
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Buildings Insurance is an essential basic safeguard for property owners, insuring against the risk of damage like fire, flood, and subsidence. It is essential that your buildings insurance premium covers re-build cost of your property.

The re-build cost is distinct from the current market value of your home. The market value may be lower than the re-build cost, but is most often higher. The re-build cost is the amount of money it would take to completely re-build your house in the event of a disaster like a house fire or earthquake.

When you are looking to take out or change buildings insurance on your home, it is important that your premium covers the correct amount. Underinsure, and you risk having to find additional money in the event of complete rebuild. This kind of damage is quite rare, however, so if you over-insure you will effectively be throwing money away year on year.

There are two main ways to establish the re-build cost of your property. The first ? and most accurate ? is to commission a Rebuilding Cost Assessment from a chartered surveyor ? on average this will cost about ?200 pounds.

If ...
... you want to find the re-build value of your home without this kind of outlay, you should try contacting your mortgage provider ? as pre-purchase survey reports often contain re-build value.

Another approach is to get a rough estimate of the rebuild cost by using a rebuild calculator. This online tool can give you an approximate rebuild cost when you enter the measurements and other details such as the construction materials of your house.

Perhaps the best starting place for buying buildings insurance is to contact one of the major players like The Co-Operative Insurance to get an idea of the products on offer. The Co-Operative Insurance, for example, offer a standard ?500,000 re-build cover in the basic buildings insurance package ? a figure that will cover the re-build cost of many average homes ? so that a rough estimate of re-build cost on the modest property will be accurate enough when purchasing such a buildings insurance policy.

There are always savings to be made by looking at the deals offered by buildings insurance brokers when you combine buildings insurance purchase with buying other insurance products; for example the Co-Operative Insurance offer a 1/3 off when buildings and contents insurance are bought together, this can be a significant saving. Deshawn Chillo is the author of this article. Make sure you have the right buildings insurance and car insurance policy with The Co-Operative Insurance.