16:32 28 November 2012
If there is a fire in your home it can unfortunately affect you in many ways. When it comes to house insurance, you should ideally have a house insurance policy in place to cover you for the cost of having to rebuild your home.
This relates to home owners who have tragically had their property burnt to the ground. A house insurance company can pay for this if the correct cover is in place, but it worth remembering a few details;
- The cost of a rebuild will not mirror the price you bought your home at, and it may not be the same as the market price for your house. It is often lower than these figures.
- If you are a new home owner, the price should be detailed on your mortgage valuation.
- You can use online calculators to work this out – many house insurance companies offer free online calculators
When buying a property, you should always make sure you check the fine print of your house insurance document to see if you are covered adequately. You need to have the right cover in place to suit your needs.
Working out rebuild costs
When working out your rebuild costs it is important to get it right; you could end up paying too much money for your house insurance cover, or even pay too little and be left with a shortfall in your insurance.
Some house insurance quotations may seem more expensive than others, and this could be for a number of reasons. Some may claim to offer unlimited cover. Others may have worked out your house insurance cover based on the number of rooms your property has etc. and so the details will need to be checked out.
Experts warn customers to review their rebuild prices often, and it is worth bearing in mind that things such as having extensions on your property can affect your rebuild costs.
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