understanding financial jargon
Buildings insurance Calculator; Rebuilding Cost Information
It is the responsibility of the insurer to get this figure right, but the Association of British Insurers (ABI and the Royal Institute of Chartered Surveyors (RICS) have got together to develop a rebuilding cost calculator which can be used by anyone for free (up to six times a year). It is hosted on a website for the Building Cost Information Service (BCIS) which is widely used by surveyors who are commissioned by the Association of British Insurers (ABI) to provide guidance for the rebuilding costs of properties.
The rebuilding cost calculator will calculate the cost of rebuilding your house, not it''s market value. The land your property is sited on can make up for up to a third of the market value of your property, so by insuring for rebuild cost rather than market value you could save up to 30% on your premium.
Please note that the calculator is only a general guide and if necessary you should take professional advice from a chartered surveyor. The guide assumes your property is of average design and average quality, and does not take into account specifics such as non-brick built properties, basements/cellars, special design features and so on. However it can be used as a general guide to assist us in getting you a good deal for your home insurance.
How to use the calculator
The BCIS website contains a comprehensive set of instructions on what data is used but is a little technical. The following are brief instructions on the important points.
- 1. You will need to register before you can use the calculator.
- 2. On the BCIS website, calculate the gross external floor area of the house - this is the area measured to the external face of the external walls for ALL original floors.
- 3. Obtain the rebuilding cost in £/m² from the BCIS table.
- 4. Select the 'Type of Property' from the drop down menu
- Semi-detached Bungalow
- 5. Select the 'Age of Property' from the drop down menu. There are four age bands.
- Pre 1920
- 1920 - 1945
- 1946 - 1979
- 1980 to date
- 6. Select the region
- Region One: Greater London
- Region Two: South East, East of England
- Region Three: North West, South West, West Midlands
- Region Four: East Midlands, Yorkshire and The Humber, North East, Wales, Scotland
- 7. Insert a figure for rebuilding any garages
- 8. Insert a figure for anything else covered by the policy in the box marked 'Add for other items covered'
- 9. Not all policies will be index linked so add a suitable allowance for inflation during the policy.
What to do if you need more help
If you need more help with your specific commercial loan, mortgage or insurance requirement please speak to a professional financial adviser.
We hope you found this information useful.
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