At least most people are able to have an informed stab at working out how much their possessions are worth for contents cover, however, for buildings insurance estimates can again be very dodgy.
Research has shown that 67 per cent of people do not know the rebuilt cost of their home and 35 per cent believe that the rebuild cost and the house value are the same. Overpaying means potentially paying too much each month, however, even more worrying are the 10 million homes that the insurer suggests could be under-insured.
Simon Stanney, director of insurance at SunLife, says: “In the unfortunate event that your home requires a complete rebuild and your buildings insurance is not sufficient, you will be left to cover any difference in price. Worse still, if your property is mortgaged you could be left with no home and thousands to pay back to your lender.”
The best way to get an accurate rebuild cost is to get a surveyor to carry out detailed measurements of your house and then prepare a professional Rebuilding Cost Assessment.