Home insurance value

abnormalnorman

Hi,

I purchased my home for €375k, which included site, shed etc. The property (including site, shed etc) was valued at €390k at the time, by the banks.

When insuring it, i figured if the house got burnt down , it would cost about 250k to rebuild it on the same site, and so, put this figure down for the building value to be insured (reducing my insurance cost).

If my house got burnt down (and please god it never will), I would still be left with the site, worth 45k, the foundations / drainage / driveway, footpaths etc, worth probably about 50k, the shed worth about 25k. So I would just need to rebuild the house on existing site.


However, the bank I have my mortgage with refused to accept my insurance cover, saying I need to insure it for the whole value - i.e.€390k.

Is this correct, and why is this so? Its not as if the whole thing is going to dissapear, and im ever going to have to buy a site etc again?

alias no.9

SCSI have a rebuild cost calculator

https://www.scsi.ie/advice/renewing_your_house_insurance_rebuild_calculator

Dav010

You can insure a house for whatever amount you want and pay the associated premium, but the max the insurer will pay out is the rebuild cost. Just insure for the amount the bank is looking for.