Home Insurance Rebuild Cost Explained
Quick answer
Rebuild cost is what it would cost to rebuild your home from scratch, including demolition and professional fees. It is different from market value, and setting it too low may reduce a claim. Professional assessments are often recommended for high-value homes.
What Is Rebuild Cost?
The rebuild cost (also called reinstatement cost) is an estimate of what it would cost to completely rebuild your home from scratch, generally including:
- Demolition and site clearance
- Architect and surveyor fees
- Materials and labour
- Planning and building regulation costs
It is not the same as your property's market value, which includes the land value and is influenced by location, demand, and market conditions.
Please note: this guide is for general information only and does not constitute insurance advice. High Value Home Quote is an introducer — we connect you with FCA-regulated specialist brokers who can provide tailored advice.
Why It Matters
Buildings insurance is generally based on the rebuild cost rather than the market value. Having an accurate rebuild cost figure helps ensure your cover is appropriate. A specialist broker can advise on how to obtain an accurate assessment for your property.
Rebuild Cost vs Market Value
These two figures can differ significantly. For example:
- Properties in areas with high land values may have a market value considerably higher than the rebuild cost
- Period or listed properties may have a rebuild cost significantly higher than the market value due to specialist materials and methods required
The relationship between the two varies depending on the property, which is why a professional assessment can be valuable.
How to Obtain a Rebuild Cost Estimate
BCIS Calculator
The Building Cost Information Service (BCIS), run by RICS, offers an online calculator that provides a basic estimate based on property type, floor area, region, and construction type. This can be a useful starting point for standard modern properties.
Professional Assessment
For high-value, listed, or non-standard properties, a professional rebuild cost assessment by a chartered surveyor is generally recommended. They will inspect the property and provide a detailed, site-specific calculation.
Look for surveyors who are:
- RICS accredited
- Conservation-accredited (for listed buildings)
- Experienced with your property type
A specialist broker can recommend appropriate surveyors and advise on whether a professional assessment is needed.
When to Review Your Rebuild Cost
It's generally good practice to review your rebuild cost:
- Periodically — every few years as construction costs change
- After significant renovations — extensions, conversions, or major refurbishments
- When reviewing your insurance — to ensure your cover remains appropriate
How We Can Help
High Value Home Quote is a free introducer service. We connect you with FCA-regulated specialist brokers who can advise on rebuild costs and appropriate cover for your property. We don't provide insurance advice or arrange policies ourselves.
Speak to a specialist — our free service connects you with brokers who can guide you through the process.
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