The sum insured is the maximum amount the insurance company will pay you in the event of a claim. The Buildings sum insured must represent the full rebuilding cost of your property, plus allowances for additional costs such as professional fees and debris removal.

It is important to assess the rebuilding cost of the property and not its market value. TOP
 
Like any other sum insured, it is essential that your Buildings sum insured is reviewed regularly and updated when necessary. Remember, if you make any improvements to your home, such as an extension, a loft conversion, a new bathroom or a fitted kitchen, you should re-assess your sum insured and increase it accordingly.

If in the event of a claim, your insurers consider your sum insured to be inadequate, they can reduce any settlement in proportion to the amount of under-insurance.

If you are unsure regarding the adequacy of your sum insured, you should seek professional advice TOP
 
Most Buildings sums insured are index-linked, when means they are increased annually to try to counter the effects of inflation on the costs of building materials and labour. However, because the indices used are only averages, index-linking is not a fool-proof system and does not guarantee that the a future sum insured will be adequate. TOP
 
The Building Cost Information Service (BCIS) of the Royal Institution of Chartered Surveyors (RICS) have produced a buildings insurance calculator, which can help you assess the rebuilding cost of your property. The calculator is not suitable for all types of property, therefore you should refer to the accompanying information on the BCIS site. The Buildings Insurance calculator can be found here here. You will also find information on how to search for a local Chartered Surveyor should you require a professional valuation. TOP