How much does it cost to rebuild a home?

Buildings insurance or home insurance covers the structure of your home and any permanent fixtures from damage. So not only can it look after your walls and pipes, but also the roof and windows. It will also cover the cost of rebuilding your home in case it was destroyed in an unfortunate event like a fire.

If you own a freehold property, then you’re usually responsible for its maintenance. So you’ll also be responsible for getting buildings/home insurance, which is usually mandatory if you have a mortgage . If you’re in a rented property or your property is leasehold, it’s usually down to the landlord or freeholder to sort for you. 

Our Aviva Signature home insurance combines buildings insurance and contents insurance into one convenient policy. It covers both the structure of your property and the belongings inside it. For example:

• Damage to your property and belongings
  Caused by events like fire, theft, subsidence and flooding – including contents in garages and outbuildings within property boundaries. Conditions and limits apply.
• Cover for alternative accommodation
  We'll cover you for alternative accommodation until your home’s fit to live in, up to £100,000 for buildings insurance, and £25,000 for contents insurance.
• Protection against injuries or property damage
  If you employ someone in your house in a way that our policy covers (like a cleaner) and they get hurt doing their work, we'll help pay any costs.
• Cover for matching items
  We'll cover the cost of replacing undamaged items in a set if we can't provide a matching replacement, up to the policy limits. Conditions apply.
• Replacement locks cover
  If the keys to your home are lost or stolen, we'll pay to replace the locks or lock mechanisms ^{Footnote [1]}.

Our Aviva Signature buildings insurance, on the other hand, covers you for damage to the structure of your home - walls, roof, floors, permanent fixtures - against events like fire, flood, subsidence or theft. It also includes:

• Cover for alternative accommodation
  We'll cover you for alternative accommodation until your home’s fit to live in, up to £100,000.
• Cover for matching items
  We'll cover the cost of replacing undamaged items in a set or suite (such as tiles, basins and fitted furniture) if we can't provide a matching replacement, up to the buildings limit. Conditions apply.
• Cover your public liability
  Our standard buildings policy covers your liability to the public as the homeowner. Conditions and limits apply.
• Unlimited buildings sum insured
  There's no limit to the overall amount we'll cover your property for ^{Footnote [2]}.

Your rebuild cost will depend on a few different factors, such as:

• labour.
• materials.
• architects. 

Usually, a buildings plan should factor in the cost of providing you with somewhere to stay while your home is rebuilt. 

Is the rebuild cost different to the market value? 

Yes, your rebuild cost will be different to the market value of your home. The market value of your home will be influenced by more than just the structure of your home. It will consider:

• how good your transport links are.
• access to amenities and hospitals.
• local crime rates.
• school catchment areas.

Your rebuild cost, however, will be based on the cost of labour and materials, which may depend on where you live.

With Aviva Signature buildings insurance, most homes qualify for Unlimited Sums Insured, which means our customers don't have to worry about rebuild costs or estimates. We make it simple to understand if the level of cover you've requested is sufficient, as instead you will have unlimited cover.

When insurers do ask the rebuild costs, to understand if the level of cover required is sufficient, its due to factors such as the size of your home, its age, as well as seeking to understand the number of bedrooms or if the property is a listed building.

If you underestimate the rebuild value, and your home is damaged, you’d potentially have to cover some of the rebuild costs yourself.

If you overestimate, then you can find that you’re paying more for insurance than you need too.

There’s a couple of different ways you can figure out the rebuild value (if you weren’t told when you purchased the house, or you’ve made major changes since):

• Online tools and calculators – Some insurers have rebuild calculators to help you. You’ll have to input a few details about your property, like the type of property you own, the year it was built and the number of floors. It will give you a rough idea of the rebuild cost.
• Request a survey – You could also request a surveyor to come and view your property, but this comes at an additional charge (unless you’re getting one as part of a property purchase).