Online calculator for rebuild valueWhen you are insuring your let property it is crucial that you remember you need to insure it for the rebuild value and not for the sale price which will usually differ hugely. There are some obvious reasons for why these two figures vary which I will explain further below and also tell you where you can find online calculators to work this figure out. |
Buy to let rebuild value |
The reason that the resale price of a property and the rebuild value vary is that even if the property was to burn down you would still own the land which can obviously be very valuable. As an extreme example, if you had a property which was located on the same road as buckingham palace then obviously its sale price would be incredibly large but the cost of rebuilding the property wouldn't be any higher than if the property was in another part of london. However sometimes the sale price may be lower than the rebuild value so you should always have a professional survey undertaken to find these figures out.
| There are many different ways to work out the cost of rebuilding your property should the worst occur. Unfortunately there is no correlation between the properties sale price and rebuilding cost for the above discussed reasons. You will usually find the reinstatement cost on your mortgage survey or you may have had a professional survey taken out on the property before you purchased to check for things like subsidence. |
Whilst there are online calculators which can work out the rough rebuild value of your property, they are just that.. rough ideas. The calculators usually work by taken quite general data about the building such as its location, size and construction. While these figures can sometimes be close to the correct ones, they're usually quite far out and it's not recommended to use these figures for the purpose of insurance.