How much should my client insure for?

Existing Structure

Your client’s home should be insured for its rebuild cost (and not for its market saleable value). They should also include the rebuild cost of any outbuildings, garages, walls, etc if they require them to be covered. They may be certain of what this rebuild cost is, as they may have had a survey carried out on the property if they recently purchased it. If they have not had any professional advice regarding the correct rebuild value of your property, we suggest that they arrange for some now. If the contractor or architect that you are using for the works is suitably qualified, they may be able to guide them on this issue. If not, they could seek help from a local surveyor.

If they own a Listed property it is protected by law and they should be particularly careful about assessing the correct rebuild cost. They will need to ensure that this includes like for like materials and the cost of hiring contractors able to carry out specialist techniques.

Insuring for the correct value is important, as insurance policies like ours, covering domestic properties, generally contain a clause which reduces the value of any full or partial claim settlement should the insured amount be less than the correct rebuild cost.

Contract Works

Your client will usually be given a price from the architect or builder carrying out the works and this will be the Contract Value. The Contract Value is what they should cover under the Permanent and Temporary Works part of the policy. This should include irrecoverable VAT if applicable.

If there are any items that will be salvaged from the building and used in the works, the value of such items should be noted separately under the Permanent and Temporary Works sum insured.

Should my client protect their own exposure for liability to the public?As with the increased risk of damage to your client’s property, the risk of injury or damage to other people or their property increases whilst works are ongoing.

The policy cover available with our product gives you the benefit of their own liability cover as property owner and includes cover whilst there are works at the home.