What does Calculating Rebuilding Cost mean?

When contracting a Buildings Insurance, the first thing you actually have to do is calculating the rebuilding cost so that you make sure you insure yourself for the appropriate sum. The real market value of your home and the rebuilding cost of your home are two very distinct notions.

There is a possibility that you can determine the rebuilding costs of your home by applying the following formula, and all you need is basic mathematical skills: Firstly, you determine the ground floor in your home, then the total floor area which means the number of floors multiplied by the ground floor area; then you take the total floor area and multiply it by the estimate building cost/square ft. which usually is a value ranging between £59 and £112, and these values are always subject to which area your house can be found in, and certainly how old these properties are.

In order to exemplify it, let’s take a home which has two floors, the ground floor area is say 1200 square feet, and these values automatically give us a total floor are of 2400 square feet (because as mentioned we get the total floor area by multiplying ground floor area by no. of floors, in this case 1200x2=2400), and if assuming that the rebuilding cost/square feet for this respective building is the cheapest, meaning £59 that will give us a total rebuilding cost of £141,600.

Certainly making these calculations by your own will help you have an idea of the total rebuilding costs of your home, but you can always seek for professional help in these calculations.