Building replacement value

[blueskymine]

Hi

Sorry I read a post long ago about builing replacement cost for building insurance purpose, but I keep on looking and can't trace it.

So how is the replacement value estimated?

Also, I checked with Terry Sheer, Real ins and Youi, comparing a same property, Youi was the most exp, then T S than R Ins, with the latest giving a flood cover. Am I missing something?

Thanks

 

[S.T]

Here's one that's on the RACV website.

http://www.racv.com.au/wps/wcm/conn...e/home+insurance/how+much+insurance+do+I+need

 

[blueskymine]

Thank you

I tested it, and I think I did not fill it properly at all, as I tested on assumption.

When it comes to your P insurance, is it the sort or tool you will be using? all of you?

 

[psylink]

It comes down to what's in the PDS. Some consider the value to be just the "building" and keep the costs of demo/clear/council etc separate and others lump it all together.

 

[beachside]

If you use one calculator you will get an insurable value of $340k, use another and get $180k ???????

Note, an insurance company does not pay out above rebuild cost despite how much over insured .....lining insurance company pockets more than necessary!

I used Cordells guide yesterday on one of the insurers sites, but here it is diect http://homebuilding.cordell.com.au/index.php?c=survey&profile=53

I found it to be closer than some other calculators I have used. But as stated above, you need to know what is included in sum insured and what is covered in ADDITION TO SUM INSURED. Makes a difference on what SI you need.

 

[blueskymine]

Thanks Beachside
That's it, when I used the link originally given, the replacement value was far too excessive.

I'll keep this one you mentioned and will test it

Thanks again

 

[S.T]

Maybe ask the insurance company how you can calculate it? They might have one website that they recommend. They really should provide you with some guidance, cant expect a normal punter to be a building expert.

 

[blueskymine]

Good idea, I will ask the insurance co.

 

[beachside]

Insurance companies will not recommend anything so they can not be held liable for insuring for incorrect value. The onus is on the insured to determine correct amount .....and unless you get a builder to quote on demolition and rebuild with council fees taken into account .......who knows!!!

Most calculators on the insurance sites are from external companies such as Cordells etc and stated in the small print. No point asking insurance staff, most have no knowledge or understanding, just repeat screen prompts. I asked for a quote on a fibro house a few days ago @$200k. I was told the replacement cost should be $340k .... based on the average and that if it had to be rebuilt it would have to be in brick as fibro is no longer used. I introduced her to the idea that there are many non brick materials that could and would be used in such a situation ......no council regulations preventing such!!!