I've just been using the on-line rebuilding cost calculator at
http://www.abi.org.uk/Public/Consume...Calculator.asp
or
http://tinyurl.com/6skke to check up on my insurance valuations on a pair of
adjacent terraced houses I own (regular readers will recall all my plaintive
cries for help earlier this year while I was in the midst of subdividing
these from the single property which it used to be!).

Now, I've used the calculator to generate rebuild costs for each house, and
then for the hell of it, added them together to get the costs for the whole
original property. Slightly surprised to find that this was precisely equal
to the sum of the two smaller properties; ie, rebuild cost is proportional
to the floor area and nothing else.

I realise that's the principle of insurance rebuild costs as opposed to
market valuations, nevertheless, can this be right? Surely, now there are
two bathrooms and two kitchens for example; there are two sets of
'professional fees' to be included etc.?

Another oddity (to me) is that rebuild costs seem to be a lot higher for
older houses than for modern ones. Why is that? If you're having to
rebuild from scratch in the event of total loss, what difference does it
make how old the original burnt out shell was?

David

Another oddity (to me) is that rebuild costs seem to be a lot higher for
older houses than for modern ones. Why is that? If you're having to
rebuild from scratch in the event of total loss, what difference does it
make how old the original burnt out shell was?

Because if my house burnt down, I'd expect it to be rebuilt with the same
patterned brick and wooden sash windows that wouldn't be required rebuilding
some crap and cheap uPVC and stretcher bonded modern hutch. I'm also not
losing my intricate plaster mouldings that adorn the staircase. That all
costs, and I have no problem paying higher premiums to cover the risk.

Christian.

Lobster wrote:
I've just been using the on-line rebuilding cost calculator at
http://www.abi.org.uk/Public/Consume...Calculator.asp
or
http://tinyurl.com/6skke to check up on my insurance valuations on a pair of
adjacent terraced houses I own (regular readers will recall all my plaintive
cries for help earlier this year while I was in the midst of subdividing
these from the single property which it used to be!).

Now, I've used the calculator to generate rebuild costs for each house, and
then for the hell of it, added them together to get the costs for the whole
original property. Slightly surprised to find that this was precisely equal
to the sum of the two smaller properties; ie, rebuild cost is proportional
to the floor area and nothing else.

I realise that's the principle of insurance rebuild costs as opposed to
market valuations, nevertheless, can this be right? Surely, now there are
two bathrooms and two kitchens for example; there are two sets of
'professional fees' to be included etc.?

Another oddity (to me) is that rebuild costs seem to be a lot higher for
older houses than for modern ones. Why is that? If you're having to
rebuild from scratch in the event of total loss, what difference does it
make how old the original burnt out shell was?

If your 15th century cottage burns down, and you want to replace it exactly,
then older construction techniques can be considerably slower than timber
framing.

Because if my house burnt down, I'd expect it to be rebuilt with the same
patterned brick and wooden sash windows

P.S. Other things that might apply

(a) Chances that asbestos will be discovered, making demolition more
expensive.
(b) Problems with planning/conservation issues.
(c) Possible greater fire risk (won't affect rebuild cost, but might affect
premiums).
(d) Use of proper roof structure, rather than cheap trussed rafters.
(e) Use of more expensive materials, such as real slate on roofs.
(f) Requirement for more highly skilled crafts.

Christian.

"Lobster" wrote in message
...
I've just been using the on-line rebuilding cost calculator at

http://www.abi.org.uk/Public/Consume...int_BuildingCa
lculator.asp
or
http://tinyurl.com/6skke to check up on my insurance valuations on a
pair of
adjacent terraced houses I own (regular readers will recall all my
plaintive
cries for help earlier this year while I was in the midst of
subdividing
these from the single property which it used to be!).

Now, I've used the calculator to generate rebuild costs for each
house, and
then for the hell of it, added them together to get the costs for the
whole
original property. Slightly surprised to find that this was precisely
equal
to the sum of the two smaller properties; ie, rebuild cost is
proportional
to the floor area and nothing else.

I realise that's the principle of insurance rebuild costs as opposed
to
market valuations, nevertheless, can this be right? Surely, now there
are
two bathrooms and two kitchens for example; there are two sets of
'professional fees' to be included etc.?

Obviously these are ballpark figures. I assume they work on the basis
that a big house is likely to have a larger posher kitchen and a couple
of bathrooms, etc.

I bought one of those building and renovation magazines the other day
and they have these figures per sq m, but also say that if you know the
exact cost of a kitchen, for example, then deduct £20 from the price per
sq m and add on the cost of the kitchen at the end.

They also had a whole load of figures for using different outer skins,
different types of roof tile etc etc. It was quite interesting, in its
own rather dull way.

Lobster wrote:

I've just been using the on-line rebuilding cost calculator at
http://www.abi.org.uk/Public/Consume...Calculator.asp
or
http://tinyurl.com/6skke to check up on my insurance valuations on a pair of
adjacent terraced houses I own (regular readers will recall all my plaintive
cries for help earlier this year while I was in the midst of subdividing
these from the single property which it used to be!).

Now, I've used the calculator to generate rebuild costs for each house, and
then for the hell of it, added them together to get the costs for the whole
original property. Slightly surprised to find that this was precisely equal
to the sum of the two smaller properties; ie, rebuild cost is proportional
to the floor area and nothing else.


In many cases it is precisely that.

I realise that's the principle of insurance rebuild costs as opposed to
market valuations, nevertheless, can this be right? Surely, now there are
two bathrooms and two kitchens for example; there are two sets of
'professional fees' to be included etc.?

Another oddity (to me) is that rebuild costs seem to be a lot higher for
older houses than for modern ones. Why is that? If you're having to
rebuild from scratch in the event of total loss, what difference does it
make how old the original burnt out shell was?

Yu may have to bring the older house up to modern standards I suppose.


David