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tim
August 7th 03, 08:47 PM
"usenetacct" > wrote in message ...
> Do insurers think that houses cost more to rebuild now they are worth
> more? If so should I increase my buildings insurance value to cover
> this?

Nope. They might though cost more to rebuild because the rise in
the prices has seen an increase in the number of new builds started
which has (helped) result in a shortage of tradesmen and thus an
increase in labour costs.

Tim


> --
> mark
>
> All direct mail to this account is deleted unseen.
> To send me mail; ask on the NG.

Stephen Burke
August 8th 03, 12:27 AM
usenetacct > wrote:
> Do insurers think that houses cost more to rebuild now they are worth
> more? If so should I increase my buildings insurance value to cover
> this?

Generally no, rebuilding costs are not directly related to price. In any case
most insurers seem to go by type and size of house rather than an insured
value. For many houses the rebuilding cost is less than half the purchase
price, in effect the balance of what you pay is for a plot of land with
planning permission, and it's hard to see how a natural disaster could destroy
that (although I suppose subsidence could make it impossible to rebuild, I'm
not sure what would happen then).

--
Stephen Burke

Allan Gould
August 8th 03, 07:53 AM
usenetacct wrote:
>
> Do insurers think that houses cost more to rebuild now they are worth
> more? If so should I increase my buildings insurance value to cover
> this?

Try comparing the ABI/BCIS House Rebuilding cost index
(http://www.bcis.co.uk/costind.html) to a house price index of your
choice?

Allan in Settle

Stephen Burke
August 16th 03, 09:36 PM
Richard Faulkner > wrote:
> Locally, rebuilding costs tend to be more than price.

Even so, they probably aren't increasing just because house prices are
increasing (although maybe there is a tendancy for builders to push up prices
as it becomes a smaller fraction of the property value).

> Dont forget that, if a house is partially damaged to the point where
> it needs rebuilding, there is demolition, site clearance and
> preparation.

Indeed. It's also a little perverse that, relative to the size, terraced
houses have the highest rebuilding costs and detached houses the lowest.

--
Stephen Burke

john boyle
August 19th 03, 12:34 AM
In message >, Stephen
Burke > writes
>Indeed. It's also a little perverse that, relative to the size, terraced
>houses have the highest rebuilding costs and detached houses the lowest.
>
Detached houses cause no collateral damage.
Actually IME experience the cost of the work undertaken is similar, its
just represents a greater proportion of the total value of the land &
buildings.
--
john boyle

Timothy Lee
August 19th 03, 09:19 AM
In article >, Stephen
Burke > writes
>
>Indeed. It's also a little perverse that, relative to the size, terraced
>houses have the highest rebuilding costs and detached houses the lowest.

But obvious, if your terrace house falls down it is likely to have
affected the neighbouring properties as well and rebuilding is likely to
be more difficult due to other buildings being in the way.

--
Timothy Lee http://www.wightproperty.com