Many people still believe that when they are insuring their property (buildings insurance), that the value for insurance purposes is the same as the value of the property, or what they have just bought it for.  “This is incorrect; your property should be insured for the cost to rebuild your home and NOT its value”, states Robert West of PWR Property Consultants.

As stated above, the cost of rebuilding the property will not be the same as the market value. Surveyors and insurers have some rules of thumb to help you work out what your property is actually worth – but to be absolutely sure you should get an Insurance Valuation carried out. If you’re buying a property, the lender’s valuation report will also contain a rebuilding cost figure.

Broadly speaking to work out your rebuilding cost, you should know the building dimensions which can be calculated by multiplying the length and width of the property in feet by the number of storey’s.

1. Calculate the ground floor area: ground floor area = Length x Width

2. Calculate the total floor area: total floor area = Ground floor area x Number of storeys

3. Calculate the total rebuilding cost: total rebuilding cost = Total floor area x Rebuilding cost per square foot.

The cost per square foot will vary depending on where in the U.K. you live.

PWR Property Consultants are specialists in the letting and management of residential property only and have two Chartered Surveyors in house who are able to carry out insurance valuations for clients.  For more information contact Robert West on 01623 659111 or visit www.pwrlettings.co.uk