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How much buildings insurance cover do I need?

There are two types of building insurance, bedroom-rated and sum insured:


This is the simplest way to buy buildings insurance. Most people prefer it as the insurance company does the hard work for you by calculating the cost of rebuilding your home based on the number of bedrooms. It sets a sum assured – the maximum amount that can be paid out – to protect your home against misfortune.

Tip: If you've just moved house, you can check that the sum insured is high enough for your needs by using a recent survey of your home.

This is where the onus is on you to calculate the cost of rebuilding your home which is why most people prefer the

ease of bedroom-rated policies. The 'sum insured' has to be sufficient to cover the cost of rebuilding the property should disaster strike.

It's important to know that this figure can be different to its value or if you've just moved in, the price you've just paid for the property. In fact, it can sometimes be a good deal less. But don't panic, this is usual. If in doubt, ask your insurer for guidance.

Tip: A chartered surveyor can also help with calculating the sum insured. You can use the Find a Surveyor search on the Royal Institute of Chartered Surveyors' website

Tip: To get an idea of the rebuild cost of your home, use the ABI's handy calculator at:

Category: Insurance

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