Advice on insurance cover would be great

[PJP]

Hello
We have an oversized listed property in Devon and our building and contents insurance policy is going to bankrupt us - we have trouble finding anyone who will cover our non-standard house. The crucifying thing is that the estimated re-build cost is twice the value of the property. If anyone has had similar issues and has found an insurance company who will cover such houses without charging an arm and two legs, we'd be so grateful to hear about them. Thanks!

 

[fernicarry]

I'm not listed so less of a challenge but my rebuild cost is apparently over 4 times my market value, albeit with a huge range of uncertainty. It seems like "commodity" policies only go up to 1M in rebuild costs and once you are over that you are into the more specialised policies that assume you also want all the bells and whistles to cover your collection of Ming vases against all possible risks.

At last renewal I separated contents and buildings into separate policies. I'm sure I've looked at this before but this time it was viable. The building policy is unlimited rebuild cost but stripped back with none of the accidental or emergency rubbish and the highest excess on offer. The contents from a different insurer has a more normal excess and a few of the extras like cover away from home and legal cover. Still not what you might call cheap but together they came out far cheaper than a combined policy and fit my needs much better.

The secret is in the high excess I think. Bear in mind that sanitaryware and built in appliances are considered part of the building so with a high excess you are basically on your own as it won't be worth claiming for damage to those. But that's kind of the point, insurance is really only for a serious loss that you couldn't afford to cover yourself like the house burning down or a tree branch falling on your neighbour and putting him in hospital.

 

[Kearn]

Get a decent broker and see what they can find… any of the high street options usually top out at £1M rebuild. Getting an independent rebuild valuation is essential nowadays for insurers to cover, and even if not, they will try to wrangle out of paying if they claim you’re underinsured.

Our increase this year was marginal, which was a pleasant surprise given the state of the insurance market of late. The last year we’ve been paying 4x while the building has been an unoccupied site…

 

[Gothichome]

Been down this same road ourselves, we just grin and bear it.

 

[CliffordPope]

Splitting the building and contents into separate policies sounds an interesting idea. Of course they don't then even need to be with the same company.

The reason for the apparent anomaly between valuation and rebuilding cost was explained to me once by a loss adjuster. If a part of a building is damaged, then it would have to be rebuilt in traditional methods - you couldn't just patch up an ancient wall using concrete blocks, The essence of insurance is that you don't know which bit is going to be damaged, so you have to insure every bit for the full cost of rebuilding it traditionally. The result is that the total rebuilding cover inevitably comes to more than the house is worth.

If the whole house were burned to the ground then it wouldn't normally be rebuilt as a perfect replica in all respects - it would be as a modern house made to look superficially like a period house, and so much cheaper.

 

[mardinor]

Use a broker. Still likely to cost £2500+

 

[Kearn]

Use a broker. Still likely to cost £2500+

Hard to say… we were 1600 year before last, 600pcm unoccupied for a year, and dreading the new quite moving back in, but it’s only 1800… 3000sqft of timber frame with Georgian brick add ons in Wiltshire