Estimate your buildings rebuild cost and contents replacement value. See how your excess choice affects your annual premium.
Buildings rebuild cost · Contents value · Premium estimate · Excess impact
One of the most common home insurance mistakes is insuring your property for its market value rather than its rebuild cost. These are very different figures and confusing them can lead to you being over-insured (and overpaying) or under-insured (and facing a shortfall if you need to claim).
The rebuild cost is what it would cost to completely demolish and rebuild your property from scratch — including labour, materials, site clearance and professional fees. The market value includes the land, which cannot be destroyed and does not need to be insured. In high-demand areas like London and the South East, the rebuild cost may be 40–60% lower than the market value.
Your excess is the amount you contribute towards any claim. Every policy has a compulsory excess (set by the insurer) and you can choose an additional voluntary excess on top. Increasing your voluntary excess reduces your annual premium because you are taking on more financial risk yourself. Only choose an excess level you can comfortably pay at short notice — there is no benefit to a £500 excess if you cannot afford £500 in an emergency.
Buildings insurance should cover the full rebuild cost of your home — not its market value. The rebuild cost is almost always lower than the market value. For an average 3-bedroom semi-detached UK property, the rebuild cost is typically £150,000–£250,000.
Contents insurance should cover the replacement-as-new cost of everything in your home. For a typical UK family home this is commonly £30,000–£60,000. Walk room by room and add up furniture, electronics, clothing, appliances and valuables — most people underestimate significantly.
Buildings insurance is not legally required, but most mortgage lenders make it a condition of the mortgage. If you own your home outright, it is technically optional — but extremely advisable. Without it, a major event (fire, flooding, structural collapse) could leave you facing hundreds of thousands of pounds in repair costs.
Yes. A higher voluntary excess reduces your annual premium because you are taking on more of the risk yourself. However, only set an excess level you can actually afford to pay if you need to claim. A £500 excess that you cannot fund provides no real protection.
Usually yes. Buying combined from the same insurer typically delivers a 10–20% multi-policy discount and simplifies any claims. However, always compare combined vs separate prices — occasionally buying separately is cheaper.
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