Is rebuild cost always lower than market value?

Usually yes in cities, no in rural areas with high construction costs. Always check rather than assume.

Sum insured confusing?

Rebuild Cost vs Market Value (UK Buildings Insurance)

Sum insured should equal rebuild cost — usually 50–70% of market value. Use the ABI calculator to avoid underinsurance.

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The short answer

UK buildings insurance pays the cost to rebuild your home from scratch — including demolition, professional fees and VAT — not its market value (which includes land). Use the free ABI/BCIS calculator or commission a RICS rebuild assessment for non-standard construction.

Frequently asked

Is rebuild cost always lower than market value?: Usually yes in cities, no in rural areas with high construction costs. Always check rather than assume.

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Stop guessing. Check your actual policy.

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