Cubist
Member
- Messages
- 2,498
- Location
- Shropshire/Herefordshire Border
Well the dirty deed is done for another year. The wallets significantly lighter but I can take some comfort from the fact that by shopping around I did manage to secure a renewal price roughly equivalent to what I paid last year and with no significant differences in the Terms and Conditions. This small victory is all the sweeter because that was after increasing the Re-build Cost by a hefty chunk.
I will probably not be sleeping any better though because there is always the nagging doubt that the Re-Build Cost is still not right. My hunt for good and/or empirical guidance came up with nothing better than unsubstantiated opinion and/or estimates that would not be out of place on the back of a fag packet. Indeed, short of paying a suitably qualified surveyor, fees in the order of £1000 a day - if you can find one - all that seems to be left is that fag packet. Agreed, paying a surveyor to come up with a current day estimate that can be adjusted, upwards naturally, in future years, may produce some peace of mind but, given my nature and professional training, I would still be thinking - 'What if he/she was wrong?' As none of the surveyors I spoke to were willing to offer a suitable indemnity to assuage this alternative worry I decided that a vaguely intelligent 'By Guess and By God' approach would have to suffice for this year while I perhaps continue my hunt for something more meaningful/reliable for use in the future.
Most potential insurers provide some guidance concerning Re-Build Costs but most of this consists of ‘things to consider’ such as demolition, site clearance, etc. but fail to provide any numbers even for use as a rough guide. I did however find one insurer who provided some guidance to their agents and brokers for use with listed properties. This gave approximate Re-build Costs per Square Metre for a range of property types and classes scattered across the country. These averaged out to roughly £2000 per square metre of the total floor area and became the starting point for my ‘By Guess and By God’ approach. Which consisted of the following steps:-
1. Adjust the Average Re-Build Cost per Square Metre to account for compound inflation since 2011 when the figures were published; thus RBC/Sm = £2250 (approx.)
2. Compare result with Rule of Thumb Build Cost for a new oak timber frame house (complete); £1800/Sm for initial sanity check – seems reasonable.
3. Add £500 per square metre of roof space to cover difference between thatch and tile costs.
4. Add 15% contingency to produce circa £3200 per Square Metre.
5. Add 20% to cover VAT and professional fees; thus £3840 per Square Metre.
6. Multiple by total floor area and compare with current market value.
7. If estimated re-build cost is less than market value worry you’ve got it wrong, and do the same if it turns out to be greater.
I’ll let you know if I ever come up with something better – but don’t hold your breath.
I will probably not be sleeping any better though because there is always the nagging doubt that the Re-Build Cost is still not right. My hunt for good and/or empirical guidance came up with nothing better than unsubstantiated opinion and/or estimates that would not be out of place on the back of a fag packet. Indeed, short of paying a suitably qualified surveyor, fees in the order of £1000 a day - if you can find one - all that seems to be left is that fag packet. Agreed, paying a surveyor to come up with a current day estimate that can be adjusted, upwards naturally, in future years, may produce some peace of mind but, given my nature and professional training, I would still be thinking - 'What if he/she was wrong?' As none of the surveyors I spoke to were willing to offer a suitable indemnity to assuage this alternative worry I decided that a vaguely intelligent 'By Guess and By God' approach would have to suffice for this year while I perhaps continue my hunt for something more meaningful/reliable for use in the future.
Most potential insurers provide some guidance concerning Re-Build Costs but most of this consists of ‘things to consider’ such as demolition, site clearance, etc. but fail to provide any numbers even for use as a rough guide. I did however find one insurer who provided some guidance to their agents and brokers for use with listed properties. This gave approximate Re-build Costs per Square Metre for a range of property types and classes scattered across the country. These averaged out to roughly £2000 per square metre of the total floor area and became the starting point for my ‘By Guess and By God’ approach. Which consisted of the following steps:-
1. Adjust the Average Re-Build Cost per Square Metre to account for compound inflation since 2011 when the figures were published; thus RBC/Sm = £2250 (approx.)
2. Compare result with Rule of Thumb Build Cost for a new oak timber frame house (complete); £1800/Sm for initial sanity check – seems reasonable.
3. Add £500 per square metre of roof space to cover difference between thatch and tile costs.
4. Add 15% contingency to produce circa £3200 per Square Metre.
5. Add 20% to cover VAT and professional fees; thus £3840 per Square Metre.
6. Multiple by total floor area and compare with current market value.
7. If estimated re-build cost is less than market value worry you’ve got it wrong, and do the same if it turns out to be greater.
I’ll let you know if I ever come up with something better – but don’t hold your breath.