▼ Insurers will seek to...
...settle claims in the most economic manner reasonably possible and it is a condition under most policies for the Policyholder to ‘act as if uninsured’ i.e. to take good care of their property, minimise loss and minimise cost in the same way as they would if they were funding repairs themselves, without the benefit of insurance cover.
...under most policies that the Policyholder takes responsibility for setting their sums insured adequately. It has been established at law that Insurance Companies cannot be held responsible for knowing the reinstatement value of their customers’ property. They will often offer assistance with this, usually referring Policyholders to the Royal Institution of Chartered Surveyors House Rebuilding Cost Index. You can refer to this by clicking here. You will need to know the m2 area of your house.
Your sum-insured should include an amount of c. 10% and 5% extra to cover the cost of professional Architects and Surveyors’ fees, and the cost of complying with Local Authority requirements, respectively. Some insurance policies require you to use the insurance company’s own surveyors and contractors to specify and carry out repairs to your building; check your policy wording. However provided your sum insured is adequate it will usually include the cost of independent professional fees where necessary for reinstating your loss. R.I.C.S House Rebuilding Cost Index
