subject: Factors To Consider When Buying Building Insurance [print this page] When taking out an insurance policy for your home, the big question is: how much cover do you need? The process is critical. Taking out too much insurance would result in money down the drain, while taking out too little could cause steep out-of-pocket expenses if your home were to be destroyed.
So the key is to consider the major factors that determine your home's rebuilding cost. Here are some of them:
1. Surveyors
A surveyor can help to determine the exact value of your home, before taking out a building insurance policy. This is one of the most crucial people involved in the rebuilding process, who ironically do their work before the home needs rebuilding! Carefully choose your surveyor, to prevent over-insuring or under-insuring your home.
2. Demolition
If your home wasn't completely destroyed in an accident or natural disaster, then you may need to demolish it before rebuilding it. The extent of the demolition needed can vary, though it's advisable for the cover to include the cost of major demolition.
3. Architects
Before rebuilding a home, you'll need someone to design it. You could choose a design that's similar to the original one, or another one that's completely different. Regardless of the route you take, most of us lack the skills to design a home professionally.
4. Size
Size matters when determining the cost of rebuilding your house. This involves various factors, such as the number of floors that your home has, the number of rooms that it has, the size of those rooms, and the total square footage of the home. All of these issues are crucial, so make sure that you get it right when taking out a building insurance policy.
5. Age
It's often been said that 'age doesn't matter', but it does when taking out an insurance policy for your home. Sometimes age can actually increase the value of your home, if it was built using a particular popular style. However, generally the older a house is, the less value it will retain. That's why it's crucial to perform periodic home improvements, to give your home a facelift. That will not only improve the appearance of your home, but also its value.
6. Location
This is often one of the most overlooked factors in determining the value of a home (and its rebuilding costs). Several location factors can impact the value of a home. That includes access to roadways and public transportation, the local crime rate, and its juxtaposition to structures such as factories. So when calculating the true value of your home, make sure to factor in the home's location.
7. Quality
This is basically related to the upkeep of your home. If you've added some vinyl windows, replaced the roof, or added a complete new storey-then the overall 'quality' of your home will increase significantly.
When taking out a building insurance policy for your home, it's crucial to know the exact value of your abode. Make sure to consider these aforementioned factors, to secure enough cover for potential rebuilding costs.
by: Tom Jones
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