When getting building insurance quotes should I put 'rebuild value' at around the purchase price of 250k(buying in west Sydney), or should I estimate a more realistic value of actually replacing the building component in case of fire etc? If I overestimate rebuild cost and pay a higher premium, would I get a payout from insurance then organise rebuilding, or would insurance organise repairs, and stop halfway if they can't get repairs done for the estimated rebuild price I've given them?
Building Insurance
- Thread starter Williamyuan
- Start date
There is no point in overinsurance as they won't pay out this amount. Likewise, underinsuring will leave you short. If you are getting a qs to give you a depreciation report, get them to provide you with a replacement value of the building at the same time. Otherwise a valuer would be able to do the same for you.
Insurers will provide you with a guide for replacement value, qs websites also have guides as well. Other things to consider are how much does the insurer allow for demolition, architects/engineering fees etc, loss of rent etc.
Insurers will provide you with a guide for replacement value, qs websites also have guides as well. Other things to consider are how much does the insurer allow for demolition, architects/engineering fees etc, loss of rent etc.
