ABI / BCIS HOUSE REBUILDING COSTS CHECKING YOUR SUM INSURED - CALCULATOR CONTENTS About building insurance Notes on the calculator Measuring your house Finding a surveyor Using the calculator The calculator ABOUT BUILDINGS INSURANCE Notes from the Association of British Insurers (ABI) Buildings insurance policies differ in the cover they provide and in their terms and conditions. The information here is of a general nature - for detailed information you must read your policy. Property Covered In addition to the structure, a buildings policy covers permanent fixtures and fittings such as baths and toilets, fitted kitchens and bedroom cupboards. Interior decorations are also covered. Policies usually extend to include outbuildings such as garages, greenhouses and garden sheds. Boundary walls, fences, gates, paths, drives and swimming pools may not be covered - you need to check the policy if you need cover for these areas. Against What Risks? Most policies cover damage to your home by: Fire Aircraft or things falling from them Lightning Subsidence, heave and landslip Explosion Falling trees or branches Earthquake Impact by vehicles or animals Theft Breakage or collapse of aerials Riot and malicious persons Escape of water from tanks or pipes Storm and Flood Escape of oil from fixed heating installations Extensions of Cover Most buildings policies have valuable extensions of cover. Alternative Accommodation - If your home is so badly damaged that you cannot live in it until repairs are done, your policy will help to meet the reasonable cost of alternative accommodation up to a stated limit. Liability - If, as owner of your home you are responsible for any injury to someone or for damage to their property your policy will pay the damages and cost for which you are legally liable. There is usually an upper limit of £1 million or more. However, your main legal liability arises from you being occupier of your home and a contents policy covers this. Underground Pipes and Cables - supplying gas, electricity, oil or water, as well as sewage pipes, are insured against accidental damage. They are not insured against wear and tear. Glass - In doors, windows and skylights is covered against breakage together with baths, washbasins and WCs. Exclusions There are limits and exclusions to every policy so be sure you have read it. It is a legal contract and if there is anything you do not understand ask for an explanation. One word you will come across is 'excess'. An excess is an amount of money you have to pay towards the cost of each claim. Excesses vary in amount. They may apply only to certain types of claim or they may apply to all claims. Your policy will tell you. One excess that appears in almost all policies applies to damage caused by subsidence, heave or landslip. This is usually a specific amount (for example £1,000). Common exclusions are war risks, damage caused by storm or flood to gates or fences, frost, sonic bangs and radioactive contamination from nuclear fuel or nuclear waste. Sum Insured The sum insured is the amount of money for which your home is covered. It is the most your insurers will pay under any circumstances. You must calculate an adequate sum insured to avoid claim payments being reduced because of under insurance. Regular checks should be made to ensure it remains correct. It is your responsibility to get the sum insured right. The sum insured under a buildings policy must be the full rebuilding cost of the home. The market value of your home or the Council Tax band valuation have no direct relationship to the rebuilding cost of your home. You can instruct a member of the Royal Institution of Chartered Surveyors to prepare a professional Rebuilding Cost Assessment for insurance purposes. A Rebuilding Cost Assessment will normally be carried out by taking detailed measurements of the house and using the rebuilding cost information provided by BCIS. However, this may not be appropriate in certain circumstances where the method of Rebuilding Cost Assessment will need to be specially agreed. The information on this site gives you advice on how to check the rebuilding cost for a range of standard house types. Index Linking You must make sure that the sum insured is kept up to date to allow for changing rebuilding costs. Many insurers help by 'index linking' your policy. This simply means that your sum insured is altered automatically whenever there is a change in the rebuilding cost. Usually there is no charge for any increase between renewal dates. Index linking can work properly only if your sum insured is right to start with. Then make sure you keep it up to date by telling your insurance company if you improve your home - perhaps by installing central heating or building an extension. Do not rely on index linking alone to keep your sum insured up to date. Review your cover every few years. Emergency Repairs If your property is damaged, do what you can to stop the damage getting worse. Many policies cover the cost of temporary work. Some insurers provide emergency 'helplines' which will help you to find a competent tradesman who can carry out emergency repair work. Prevention Your insurance policy can help put things right, but cannot compensate for the upset and inconvenience. Take all the precautions you can to prevent the worst from happening. It has been found, in particular, that tree roots can cause damage to your own or your neighbour's property. It is important to take professional advice before planting or felling trees. BCIS Rebuilding Cost Guidance The Building Cost Information Service (BCIS) of the Royal Institution of Chartered Surveyors (RICS) produces a range of detailed guidance on the cost of rebuilding houses and flats. The ABI has commissioned BCIS to provide the general guidance included in the checking your sum insured calculator on this site, to help you check the adequacy of your sum insured. BCIS publish three annual guides to surveyors and provide an on-line service. Guide to House Rebuilding Costs Regional Supplement Guide to Rebuilding Costs of Flats BCIS Rebuild Online For details or to purchase these or other BCIS publications and services see www.bcis.co.uk Further Information If you need further advice on insurance, your building society, insurance company, broker or insurance adviser will be pleased to help. Association of British Insurers The Association of British Insurers (ABI) represents around 400 insurance companies, which between them account for over 98% of the business of UK insurance companies. The Association represents insurance companies to the Government and to regulatory and other agencies, and it provides a wide range of services to its members. CHECKING YOUR SUM INSURED House Rebuilding Cost Assessments for Insurance Purposes Most domestic house insurance policies require that the sum assured is the full rebuilding cost of the property. It is the responsibility of the insured to get this figure right. BCIS is commissioned by the Association of British Insurers to provide guidance figures for the rebuilding cost of a home to allow householders to check their sums insured. This calculator gives a general indication of rebuilding costs for many common properties within the UK, but it should be noted that it is not appropriate for all houses and the rebuilding cost of even similar houses can vary depending on individual circumstances. The guidance figures are based on specific examples of five different house types of average quality, built using standard construction methods. They are not applicable to: Houses built of stone or materials other than brick; Properties with more than two storeys (see note on 'measuring your house') or with basements and cellars; Houses with special design features; Houses other than of average quality; Flats, because types of construction differ widely, as do responsibilities for shared parts; Houses of greater size than those described in the tables; Houses containing hazardous materials e.g. asbestos, likely to require special precaution/treatment following damage or demolition; Houses which are considered to be historic or are listed buildings, which will almost certainly have to be rebuilt to their original design using identical materials. It is recommended that a flat or maisonette is insured together with the other flats or maisonettes that make up the block, under a single policy arranged for the whole block. This will avoid complications which may arise if units are insured individually and also ensure that you have the widest possible cover available, e.g. for common parts, which may not be available under an individual policy. To calculate the rebuilding cost for any of the above categories, seek professional advice: do not rely on this calculator. The rebuilding costs in the calculator provide for an average home to be rebuilt to its existing standard using modern materials and techniques and in accordance with current Building Regulations and other statutory requirements. Where it is necessary for your home to be rebuilt exactly in its original style to comply with local authority requirements, you must allow for the additional costs and a professional Rebuilding Cost Assessment is essential. It is stressed that the calculator is intended for checking sums insured and is no substitute for professional advice and judgement, particularly where a property has any unusual features or is outside the range of properties described above. If the rebuilding cost from the calculator is markedly different from your current sum insured contact your insurance company, broker or a local Chartered Surveyor. Finding a Surveyor Professional advice can be obtained from a Chartered Surveyor: the RICS web site can be used to search for a Chartered Surveyor in your area. Measuring Your House You need to find the external floor area of your home - both upstairs and downstairs. The best way is to go outside and measure the length and width of your home and multiply these figures together. If you cannot measure outside, measure inside and add the thickness of the walls. You can measure either in feet or metres. An integral garage would be included in this calculation. You now know the ground floor area. For upstairs, you may be able simply to double the ground floor area. If the other floor area is a different size then calculate the upstairs area separately and add the figures together. For three storey houses, only 70% of the floor area of the third storey need be included. A third storey of a house does not mean the attic in a two storey house, unless the roof space has been converted into a third storey. If you have a separate garage or a garage built on the side of the house, an appropriate amount will need to be added to the rebuilding cost of the house. You will also need to allow an appropriate figure for fences, gates, walls, patios, paths, drives, swimming pools, etc. Using the Calculator Inputting Your Details Insert the floor area (Note a) in the box marked 'Total external area' and select the appropriate radio button 'm2' or 'ft2' Select the 'Type of Property' from the drop down menu Detached Semi-detached Terraced Bungalow Semi-detached Bungalow Select 'Age of Property' (Note b) from the drop down menu 1840 - 1919 1920 - 1945 1946 - 1979 1980 to date Select 'Regional Grouping' (Note c) A list of the counties which make up each region is available here. Insert a figure for rebuilding any garages (Note d) in the box marked 'Add for garage' see guide figures below. Insert a figure for anything else covered by the policy in the box marked 'Add for other items covered' Most policies will be index linked but if not select the 'No' radio button to the 'Is the policy index linked?' question and insert an allowance for inflation up to the date when the house might be rebuilt if damaged on the last day of the policy in the box which will appear. Select 'Calculate' and the calculator will report an estimate of the rebuilding cost. Notes (a) The costs are based on specific examples of small, medium and large houses. The calculator applies these costs to other floor areas in a range. It does not pro-rata the figures. (b) The costs are based on typical design and specification for the period. The changes in specification and design implied by these age band occurred gradually rather than at specific dates. The 1840 - 1919 band is based on Victorian and Edwardian houses. No guidance is available on 1840 - 1919 bungalows. (c) The Regions are based on the Government Office Regions with the addition of Scotland, Wales, Northern Ireland and the Channel Islands to make some allowance for regional differences in building costs. However, local variations are caused by a number of factors including competition between builders and the ease of rebuilding. You should seek local advice if your home is in the Channel Islands or Northern Ireland. (Click here to view the definitions of regions.) Building costs in the Channel Islands tend to be as high as those in London Boroughs but they are affected by particular local conditions and seeking local advice is recommended. Building costs in Norfolk and Suffolk should be reduced by 7% against the figure produced by the calculator. Building costs in Northern Ireland are considerably lower than in the rest of the UK but they are affected by particular local conditions and seeking local advice is recommended. (d) For garages (other than integral), rebuilding costs can range between £6200 for a single pre-fabricated garage to £11400 for a double pre-fabricated garage. Costs for a purpose built garage range between £14200 for a single to £19100 for a double built garage. These are national average prices and will vary depending on region. (e) The rebuilding costs also include an allowance for full central heating costs (approximately £3800), demolition and site clearance costs, Architects' and Surveyors' fees, and one half of the cost of rebuilding party walls in both terraced and semi-detached houses. (f) Costs are based on houses of an average quality finish and might need adjusting. The figures given allow for double glazing. If your house is of higher quality with, for example, a luxury kitchen and sanitary fittings, floor and wall finishes, your final figure may need to be increased by up to 25%. (g) Where a fire and/or intruder alarm system is fitted, replacement costs should be taken into account when calculating your sum insured. The Results Page The report page returns: The 'base date', which is the date of the latest information from BCIS used in the calculation. The details about your house External floor area in metres Type of property Age of property Regional group An indication of the cost per m2 for rebuilding that type of property from the BCIS guidance. An allowance for inflation from the time the tables were last calculated and the base date using the ABI/BCIS House Rebuilding Cost Index. Approximate rebuilding cost of the house. Your addition for garages where appropriate. Your addition for other items. Your addition for inflation (if policy is not index linked). Approximate rebuilding cost of the property. If the rebuilding cost is markedly different from your current sum insured contact your insurance company, broker or a local Chartered Surveyor. Size Out of Bounds Page The costs in the calculator are based on houses of specific sizes which can reasonably represent a range of sizes. If the area you have entered is outside that range no costs will be returned. The range of sizes to which the calculator applies will be shown on this page. If you think your house is not unusually large or small you should: Check that the area of your house has been measure correctly. Check that you have selected the appropriate measurement button Metres - m2 Feet - ft2 If your house is outside the range of sizes contact your insurance company, broker or Chartered Surveyor. CHECKING YOUR SUM INSURED - CALCULATOR Before using the calculator read the notes on: About building insurance Notes on the calculator Measuring your house Using the calculator Login If you have previously registered to use the calculator, please enter your details below. Email address:   Password:     Remember me         If you have forgot your password enter your email address above and click here. Registration To use the calculator, please register by entering your details below. An email will then be sent to you containing a password. Name:    Email address:    I have read and I agree to be bound by the Terms and Conditions of Use. Are you happy to receive further information about BCIS products and services?              Use of the calculator is limited to six calculations per year. If you are likely to exceed this number, please contact BCIS on +44(0)20 7695 1500 or email sales@bcis.co.uk to find out more about other rebuilding cost service options. © RICS 2008 To help homeowners, BCIS have produced the Property Makeover Price Guide: organising and budgeting for home improvers and developers. The title provides independent cost and guidance information for anyone serious about home improvement or development. BCIS is the principal source of residential rebuilding cost data in the UK and offers a range of risk solutions specifically designed for the insurance industry. Find out more on the BCIS Risk solutions website.